Press release
Publication of the Cost of Insurance Working Group’s Seventh Quarterly Progress Update
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The Cost of Insurance Working Group – chaired by the Minister of State for Financial Services and Insurance, Michael D’Arcy TD, and associated sub-groups are meeting regularly in order to ensure the timely implementation of all of the recommendations of the Report on the Cost of Motor Insurance and the Report on the Cost of Employer and Public Liability Insurance.
The publication of the Working Group’s Seventh Progress Update shows that 62 of a total of 78 separate applicable deadlines relate to actions that are now completed, equating to an 80% ‘completion rate’. While the goal is to improve upon this completion rate, it is important to consider the ground that both reports are laying for a more transparent and fairer insurance environment going forward.
The Minister of State notes that this quarter marks the occasion when much of the “heavy lifting” work of bringing necessary legislative changes through the Houses of the Oireachtas is beginning to bear fruit. In July, the Insurance (Amendment) Bill 2018 was enacted. This is an important piece of legislation necessary to address the Setanta legacy. In addition, two other important pieces of legislation were published by the Government during this period, namely the Central Bank (National Claims Information Database) Bill 2018 and the Personal Injuries Assessment Board (Amendment) (No. 2) Bill. Work has already commenced on bringing the Central Bank (National Claims Information Database) Bill 2018 through the Houses of the Oireachtas. Second stage was completed in Dáil Éireann in September, and it is hoped that with the assistance of all parties in the House, that this Bill can be enacted by the end of this year to allow the database be operational from early 2019. The Personal Injuries Assessment Board (Amendment) (No. 2) Bill completed Second Stage on 8 November.
Also of note this quarter is the Personal Injuries Commission’s publication of its second and final report. It has made ten recommendations, the implementation of which will be a matter for each of the bodies responsible. Minister D’Arcy believes that the implementation of the PIC report is key to fundamentally addressing many of the concerns that people have with the personal injury compensation framework in this country – in particular the recommendation that this country follows the example of judicial intervention which has occurred in Northern Ireland and in the UK, namely the introduction of Judicial Guidelines for judges in relation to damages for personal injury claims.
Minister D’Arcy reiterates that the implementation of the Cost of Insurance Working Group’s recommendations remain a priority for this Government. In that context, he, and the Minister for Finance, Paschal Donohoe, TD will continue to work closely with colleagues in Government, as well as other stakeholders, to ensure that the Working Group’s recommendations are implemented in a satisfactory manner. He remains hopeful that there will be a further positive impact on pricing over the next 12 months or so over and above the 22.9% fall which has taken place since July 2016.
Seventh Quarterly Progress Update
The Cost of Insurance Working Group’s Seventh Quarterly Progress Update.
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The Cost of Insurance Working Group was initially chaired by the Minister of State at the Department of Finance, Mr Eoghan Murphy T.D. However, following his appointment as Minister for Housing, Planning and Local Government, he was replaced as Chair by Minister of State for Financial Services and Insurance, Mr Michael D’Arcy T.D. The Working Group is comprised of representatives from the Department of Finance, the Department of Business, Enterprise and Innovation, the Department of Justice and Equality, the Central Bank of Ireland, the State Claims Agency, and the Personal Injuries Assessment Board.
The Report on the Cost of Motor Insurance was published in January 2017 and made 33 recommendations with 71 associated actions to be carried out in an agreed timeframe. The Report on the Cost of Employer and Public Liability Insurance was published in January 2018 and made 15 recommendations with 29 associated actions to be carried out in an agreed timeframe.
There is a commitment in both Reports that the Working Group will prepare quarterly updates on its progress. The first update was published in May 2017, the second in July 2017, the third in October 2017, the fourth in January 2018 the fifth in May 2018, and the sixth in August 2018 and all six provided details on how the implementation of the recommendations were progressing, with a particular focus on the action points which were due for completion during the respective quarters.
This Seventh Progress Update is the third such quarterly report to encompass both the Motor and EL/PL Reports and provides details on how the implementation of the recommendations is progressing, with a particular focus on the 7 actions which were due for completion during Q3 from both Reports. 4 of the 7 actions have been completed in this quarter. In overall terms, 62 of a total of 78 separate applicable deadlines relate to actions that are now completed, equating to an 80% ‘completion rate’.