Motor insurance cost review to be finalised ‘by end of 2016’

Motorists will likely have to wait until the end of the year for an interim report on soaring insurance costs to be published.

The Department of Finance launched a review of the motor insurance industry at the beginning of 2016 in response to the spiralling cost of premiums over the past two years.

Motor insurance costs have surged 35% in the past year and more than 60% since January 2014.

The pace of the investigation has been criticised by opposition TDs, with the issue of cost not addressed at all in the first phase of the review over the opening six months of the year.

Jobs Minister Mary Mitchell O’Connor confirmed that the first phase, which dealt with motor insurance compensation following the collapse of Setanta Insurance, has now been completed.

“The first phase of that review, dealing with the framework for motor insurance compensation, has now been completed and I understand the Minister for Finance expects to publish the report in the coming weeks.

"The next phase of the review will focus on the factors contributing to the increasing cost of insurance,” said Ms Mitchell O’Connor.

In her response to Fianna Fáil TD Niall Collins, the jobs minister said that the findings of the investigation into the cost of motor insurance would not be available for months yet.

Ms Mitchell O’Connor confirmed that a working group chaired by Department of Finance junior minister Eoghan Murphy began work on the second phase of the review on Wednesday.

The group has also “scheduled further meetings” for early September.

Elaborating on Finance Minister Michael Noonan’s assertion last month that the second phase of the review would take “some months”,

Ms Mitchell O’Connor said it is proposed that an interim report will be presented to Mr Noonan “by the end of 2016”.

Meanwhile, the Personal Injuries Assessment Board is in the process of updating the book of quantum, which reflects the level of compensation values awarded by the courts and settlements agreed by different bodies.

The book of quantum was last produced in 2004.