Ireland’s government has approved draft legislation for a database to keep track of motor insurance claims.
The database is aimed at helping to understand how claims costs are affecting the motor insurance premiums that consumers pay to insurance companies.
The National Claims Information Database, the legislation for which was agreed on 19 December, will “facilitate a more in-depth annual claims’ trends analysis of motor insurance claims”, according to Ireland’s Department of Finance.
Finance minister Paschal Donohoe said: “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 look forward to having the National Claims Information Database put in place.”
Ireland’s government have moved to implement a motor insurance claims database as costs in the UK rise.
An increase in the costs of personal injury claims, vehicle repairs and theft claims led to insurers paying out £2.1 billion in Q3 2017, the Association of British Insurers has reported.
Insurance and financial services minister Michael D’Arcy added: “The general scheme [of this bill]provides a very good basis for the development of this database, which once in place, should provide all interested stakeholders with a clearer view on the factors that shape the cost of motor insurance premiums.”
The Central Bank of Ireland has commenced work on developing the technical specification of the database and is consulting with industry. The database is due to be established in 2018.