Charlie Weston:

While reform has stalled, motorists and businesses pay

THE Government’s insurance reform efforts have stalled and motorists and businesses are paying the price. Insurance premiums remain elevated for motorists, and are still rising for businesses and charities.

Such are the rises, the very existence of firms and festivals is threatened, while many drivers are being forced off the road by extortionate premiums. This is particularly the case for young motorists.

But the latest report from the Government insurance reform taskforce consists of a string of excuses. Junior Minister in the Department of Finance Michael D’Arcy, who is responsible for insurance reform, is the man issuing the excuses. Plans are afoot, delays are due to other bodies, and a legislative backlog are just some of the excuses he trots out.

He defends himself on the basis most of the 100 actions listed in the latest update on the activities of the Cost of Insurance Working Group have been delivered on. But most of the deadlines that have been met involve processes, such as meetings, and reviews, consultations and the forming of committees.

The delivery of 29 real reforms the working group has been trying to get to grips with for more than two years now has been delayed.

Take the setting up of a new Garda insurance fraud unit. The insurance industry has agreed to fund it, although it would be operationally independent of the insurers, and the Garda National Economic Crime Bureau is keen to get on with setting it up. At the moment making a fraudulent claim is often a tails-youwin, heads-you-win situation. With a Garda fraud unit there is likely to be a huge reduction in false and exaggerated claims. But Mr D’Arcy says a number of serious issues require further consideration before any decision on whether or not to proceed is taken on the fraud unit.

Motorists, businesses and charities that are paying the price for the insurance crisis deserve better.