Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for her question. As she will be aware, I am not in a position, nor indeed is the Central Bank, to intervene in the provision or pricing of insurance. This position is reinforced by the EU framework for insurance, called the Solvency II Directive. Consequently, companies cannot be directed as to how they price their policies or what terms and conditions they apply in relation to cover.

It is my understanding that past claims history is one of the rating factors that insurers generally will use in making their individual decisions on whether to offer insurance, and what terms to apply. However, I am firmly of the view that insurers need to take a longer-term perspective as regards their customers, particularly businesses that have been adversely affected by the pandemic and may have had to make a claim against their business interruption policies. If insurers have experienced an overall reduction in claims costs during the pandemic period and expect savings to be made as a result of lower award levels arising from the personal injuries guidelines, they need to pass these savings on to consumers and in particular, businesses that may have been closed for much of the period. This is particularly important as businesses start to reopen their doors and we work to restart the economy over the coming months. The Minister of State, Deputy Fleming, who has responsibility for insurance, recently met with individual insurers to press the need for premium reductions in this regard. The Minister of State is taking this agenda and this issue very seriously.

I know he intends to meet the providers later in the year to continue to monitor progress in this area and the impact of the overall reform agenda on both premium levels and risk appetites of insurers.

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