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Insurance Report must be implemented swiftly -Doherty

11 January, 2017 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has said overall the Report on the Cost of Motor Insurance is a welcome contribution to tackling the crisis facing drivers being ripped off by insurers. He said if implemented quickly Minister Murphy’s Report would improve some aspects of consumer protection but that it was unfortunate that many of these recommendations seemed to be pushed to the end of the action plan. He also added that the detailed recommendations in the report show how an earlier intervention by government could have produced results earlier,

Deputy Doherty said:

“Overall, I believe the Report if implemented swiftly can help reduce premiums. It builds on many of the recommendations in the Finance Committee’s report on this issue. The detailed nature of the report including recommendations on legislative and policy change show how this government and the last one wasted years pretending there was nothing they could do. The reports shows how much can be done by government- what had been lacking was a political determination to intervene on behalf of the consumer.

The key now is the swift implementation of the proposals and strict monitoring by the Oireachtas and Finance Committee in particular so that there is no backsliding on the commitments given and the timeframes. Indeed in some areas the timeframe is not ambitious at all.

If implemented quickly many of the recommendations would help consumers but unfortunately it is these recommendations that have the latest deadline. For example, the core issue of compelling insurers to explain to consumers why their premiums have increased above and beyond any reasonable jump is put off until the last quarter of 2017. Forcing insurers to get their act together in giving returning emigrants a fair recognition of their driving history is also put off until the end of 2017.  Even worse, real transparency through a breakdown of information in premiums will wait until the 2nd Quarter of 2018.

I am glad after a delay this report has finally been published. It does however fall short in my view in the critical area of how the boom-bust cycle that the industry has operated in for some time now will be altered. As long as this cycle is maintained we are likely to be back reading another report on this issue in a few years’ time.”

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