National Claims Information Database faces further delay – McGrath

Fianna Fáil Spokesperson on Finance Michael McGrath TD has expressed frustration that a key measure to tackle high insurance costs has not yet been set up. The National Claims Information Database is not yet up and running and there is no sign of it being set up in the near future.

Deputy McGrath said, “Insurance continues to be a critical issue for businesses and consumers. Many businesses, charities and sports clubs have reported colossal increases in their insurance bills and sadly, because of this, some have gone to the wall.

“The insurance market is plagued by a lack of transparency. As a result, we cannot assess the level of claims in Ireland. This is important for potential entrants who wish to assess the Irish market. The lack of such transparency simply puts off potential entrants and stifles competition. More competition will bring down costs for businesses and consumers.

“The National Claims Information Database was supposed to provide this transparency and assess the level of claims in the Irish market. The level of insurance claims is a key driver of insurance premiums and understanding the trends surrounding claims will make it much easier for potential newcomers to assess the Irish market.

“This database was to be up and running in the second quarter of last year. Unfortunately, the government only got around to legislating for it in July last year and the legislation was finally enacted last December. Based on the response I have received; the government has completely washed its hands of the issue. The Minister only expects a report later this year, but no definitive date is provided.

“This blatantly shows yet again that this government has no interest in seeing issues through and getting the job done. It is important to note that the National Claims Information Database will look at the motor insurance market first and will only then look at public and employer liability.

“It has also been confirmed that the National Claims Information Database is an aggregate database to assess the level of claims in Ireland and will not analyse individual cases. Analysing individual cases not only would add transparency but would also help tackle insurance fraud. The Insurance Link database run by Insurance Ireland used to do just that. The database, however, is at the centre of a European Commission investigation whereby it is alleged that the provision of such a database is in breach of European competition laws.

“For quite some time now, I have called for this database to be managed and controlled by the State and not by the insurance industry.

“The Cost of Insurance Working Group recommended a similar Claim by Claim database which would have accomplished just that but inexplicably it has now been completely dropped by government. Insurance reform cannot simply be a series of reports, there must be real and substantial changes to improve the insurance market and to drive down costs for consumers and businesses”.