Claims harvesting and insurance costs
Deputy Doherty raised the burden of insurance and alleged unlawful claims harvesting websites inflating costs. The Tánaiste said the Law Society had a responsibility to act firmly and should respond if the problem persists.
I raise the issue of the huge burden of insurance costs and the crisis is not just in motor insurance but is also in business insurance, as we predicted. There are many causes of the high cost of insurance but one of them is the issue of claims harvesting. It has become dominant in the market recently. These are ordinary people, not solicitors, who set up websites giving the impression that they are solicitors and they tout for business in personal injury claims. They then sell on that information and data to lawyers who pick up the claims. It is unlawful and the Law Society has closed down 14 websites in the last three years and taken two major prosecutions to the High Court in respect of the leading websites. It is still not enough. We need robust regulation and reform in this sector. When I ask the Minister, he says it is a grey area but these grey areas are pushing up costs on businesses, motorists and on home insurance. What is the Government going to do to get to grips, finally, with this issue? The Government has been well aware of it for the last number of years.
Comment on this
I will give a direct answer to that question. There is a huge responsibility on the Law Society, and if it wants to prevent the Government changing its approach towards the work it does, and the balance between what the Law Society does and what the State does in terms of regulation, it needs to deal with this issue with a firm hand. The Deputy said that it has ensured that a number of websites have been closed down, but if there is a persistent problem which results in increases in insurance claims, the Law Society should reflect on that and respond accordingly.