Tackling the cost of Motor Insurance – Report PublishedPosted January 20th, 2017
Motor insurance prices have been rising steeply over the past 12 months to levels that are unaffordable for many individuals and very often without cause.
To tackle the factors behind these rising costs, the Government set up the Cost of Insurance Working Group, under my chairmanship, and gave us the task of consulting with all stakeholders in order to come up with workable and durable solutions.
Earlier this month, our report, with 33 recommendations and 71 associated actions, was approved by Cabinet for phased implementation over two years. Among the measures to be taken are those which will strengthen consumer protections when renewing insurance policies, tackle uninsured driving and insurance fraud, review the cost of compensation claims for things like whiplash, and bring far greater transparency to the industry.
Consumers have every right to fairness, stability and transparency from their insurers. These actions will lead to greater stability in the pricing of motor insurance and will help prevent the volatility that we have seen in the market in the past (both up and down). Their implementation should also better facilitate potential new entrants to the market. The result will be fairer premiums for consumers.
You can read my further comments on our recommendations here.
The full report can be viewed here.