On 24 November, the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach issued a report on the rising cost of motor insurance. The report stated that the motor insurance industry has withheld information from the public and engaged in behaviour of a cartel-like nature. The committee flagged that the trend of increasing motor insurance costs is unlikely to be halted in the short term. Transparency and its impact on insurance premiums is discussed in the report and the committee have provided a number of recommendations in that regard. This report will complement the parallel work being undertaken by the Cost of Insurance Working Group in the Department of Finance chaired by Mr. Eoghan Murphy TD, Minister of State.
Insurance Ireland welcomed the reforms proposed in the report and has indicated that it wants to collaborate with the government in order bring in, as a matter of urgency, policies which will stabilise the sector.
The Central Bank also issued a comment in relation to the report. It was criticised in the report for failing to protect consumers but the Central Bank has repeated its assertion that it cannot, as a matter of European Law, get involved in pricing.