Last month we asked the Tánaiste about the dramatic 30% increase in car insurance and the fact it was putting motorists under severe financial pressure. On top of the latest rise, Insurance Ireland is predicting a further 25% rise in 2016. People paying a premium of €450 can expect their bill to increase to €600. The Government responded at that time that there were many reasons for the rise in insurance costs, including rulings on the equalisation of charges for male and female drivers, the amalgamation of the insurance industry and increased payouts. Equalisation did not necessarily contribute to increased premia and is all but a red herring. While the other reasons given may have contributed to increased costs, they do not warrant a possible 55% increase in insurance premia over a two-year period.

The insurance industry seems to be getting out of control and no one, it appears, is representing the consumer. When the Motor Insurance Advisory Board, MIAB, was in place, the insurance industry only increased insurance rates by 40% over an 11-year period. It had a role in keeping costs down and protecting consumers. Today, the report of the rating agency Standard & Poor's slates the Central Bank over insurance failures. It asks whether the Central Bank has the ability to regulate the sector at all.

In December, the Government did not rule out the reinstatement of the MIAB. Given the rise in insurance premia in the motor industry and for homes in flooded areas that already have flood relief schemes in place, is the Tánaiste satisfied the insurance industry is being properly regulated? Does she believe an insurance advisory board should be established to rein in these costs and ensure all consumers and home and business owners at least have the opportunity to insure their cars and properties at reasonable prices?

As the Deputy is probably aware, earlier this week, the Taoiseach and other Ministers, including my colleague, the Minister of State, Deputy Kevin Humphreys, and I met representatives of the insurance industry in Ireland to discuss insurance for those who had been unfortunate enough to have been affected by the recent flooding. As part of the discussion, the insurance industry set out its financial issues as it saw them. There were some short contributions on the cost of other insurance in Ireland.

In a previous discussion on this matter, I expressed my concern about the fact that people were being threatened with significant increases in insurance costs. The insurance industry discussed the significant cost of claims in Ireland. Reference was made to something people will know from the media, namely, the very high level of whiplash-type claims. I understand they are a factor in the financial issues faced by the sector. Barely a week goes by without there being extensive reports on such cases throughout the country. That was a problem that affected Ireland in a particular way more than a decade ago. It seemed to have trailed off, but according to those who attended the meeting to which I referred, it is now a very significant problem for the industry.

The Deputy's main point concerned the better regulation of insurance in Ireland. As I said to him during a previous discussion, it is something on which I have an open mind. In the case of flooding, the discussions dealt with the fact the industry must address situations where significant State funding has been provided for the newer type of demountable flooding defences. However, this does not count for policyholders who seek reinsurance.

As I said to the Deputy during the previous debate, I have an open mind in respect of this. He is correct in saying that the Central Bank is now the overall regulator of the insurance industry, in particular from a financial point of view. That is necessary. I remind the House of an insurance company that was based in Malta. It offered extraordinarily cheap premia, in particular in Ireland. It then fell into financial difficulties and the motorists who had been insured with it, many of whom the Deputy will recall were young, had to seek other cover in an emergency. It is an issue to which we will have to return with the insurance industry.

We have established the dialogue of last Monday, during which the industry raised its problems with additional claims. One person said there is almost a cottage industry in whiplash claims in Ireland at the moment. As a society, we had dealt with that problem a decade ago, but it has come back to some extent. I anticipate that we will meet the insurance industry again within the next week. I will take up at that meeting some of the issues the Deputy has raised.

I thank the Tánaiste. I note her comment that she has an open mind on our suggestion. I hope and expect that she will exercise some action to elaborate on that open mind at Cabinet. The bottom line is that there are many criticisms of the regulation of the insurance industry, something on which the Government must act swiftly.

It is important that all political parties learn from the past in terms of the insurance sector. Insurance costs are out of control and the Government is merely meeting the industry to have frank discussions. There is no point telling us about the causes. People do not want to hear about the causes because they are well aware of them.

Hear, hear.

People want action. Car insurance costs will increase by 55% this year if things are allowed to continue. That is not normal and it is most definitely not acceptable.

There is no point in relying on data emanating from the insurance industry because there is no transparency in the industry. We are expected to take its word, without questioning the regulation of the industry. The days of relying on self-regulation of the industry are gone.

The response that the Tánaiste and the Minister for Finance, Deputy Noonan, are reviewing the situation will not wash. The Tánaiste, as we have stated previously, has had ample time to consider our recommendation. An advisory board will address this issue, as the MIAB did in the past. Many Government backbenchers agree with this proposal. They want the Tánaiste to take ownership of this situation and show leadership as the Government comes to an end. Will the Tánaiste answer the call that is made on us as public representatives by those whom we have the privilege to represent and ensure there are no questions to be asked about those who have regulatory authority in this area?

We cannot stand idly by when serious questions are being asked about regulation in the sector. It is time the board was put in place. The Tánaiste should not rely on the industry to give her the information, which means it can continue at pace to increase costs and insurance premiums in the manner in which it has been doing. All the good the Tánaiste claims to have exercised in the recent budget is wiped out at the stroke of a pen by the likes of this sector.

We have the examples of PMPA and Quinn Insurance, and the more recent example of the company registered in Malta. In all of these cases, ultimately because of a lack of proper financial regulation, people effectively offered policyholders an apparently better deal, which then boomeranged when the particular institutions failed key financial tests. In the Deputy's appropriate and proper concern for policyholders facing significant increases, he should not throw out the baby with the bath water.

Do not throw it out of a boat.

Do not suggest we go back to a situation-----

Put the baby in the boat.

-----where in the run-up to an election-----

Put the baby back in the boat.

Paddle your own canoe.

-----we suggest that there is a cheap quick-fix solution to this, which will result in everybody's premiums being lowered-----

The Tánaiste has ankle socks.

-----with subsequent financial failure. Nobody who is a policyholder and who pays for insurance wants to see any insurance company failing, because in this country when that happens, and under the EU model, we, the policyholders and people who pay for insurance in Ireland generally, will end up paying for it.

There is merit in what the Deputy has said. The Government has begun a very intense and detailed dialogue with the insurance industry on these matters. As the Deputy said, the Minister for Finance has written to the insurance industry. The protection of the broader interests of policyholders by the provision of insurance in Ireland is critical. Based on the conversations we have had to date, there are certain things we can do. For instance, we can look to address the surge in claims and the level of claims for whiplash because they are driving up prices for every motorist and every family that has a car. To suggest, rather disingenuously and dishonestly, that we should do this overnight simply for the purposes of electioneering-----

We raised it before. Acknowledge that. Be fair about it.

We must have proper prudential financial regulation of the sector. Remember in the cases of Quinn Insurance and PMPA, the general body of Irish insurance payers ended up paying very long-term levies for insurance policies. I am sure Fianna Fáil does not want to see a return to this. It happened three times on Fianna Fáil's watch.

PMPA was on your watch.

Was the boat insured?

Paddle your own canoe.