A Bill to establish a national database tracking insurance claims was brought to Cabinet last week looking to facilitate a more in-depth analysis of annual claims trends.
Analysis of motor insurance claims was identified by an Oireachtas working group as being key to understanding how those costs affect premiums, in particular understanding the relationship between the price paid by a customer for motor insurance and the cost of insurance undertakings.
Although the Bill was brought to Cabinet, the tracking system is unlikely to be established until next year, an Oireachtas committee was told in May.
Minister of State at the Department of Finance Michael D'Arcy, who chairs the Cost of Insurance Working Group, said the database would not be operational this year.
Improving transparency
In parallel with the Bill's development, the Central Bank has been working on developing the technical specifications of the database and is close to finalising that process, according to the Department of Finance.
"It is essential that there is an improvement in transparency around what has caused motor insurance premiums to be so volatile, both up and down, over relatively short periods of time. I believe that, in particular, the identification of settlement channel information should lead to a greater consistency in award levels and a greater use of the Personal Injuries Assessment Board, " Mr D'Arcy said.
“I look forward to having the National Claims Information Database put in place next year,” he added.
