Dessie Ellis (Dublin North West, Sinn Fein)
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It has become apparent that insurance companies are applying an unfair loading to motor insurance policies for elderly people. Premium costs have been rising rapidly for several years, with motorists having loadings imposed on their policies for different reasons. The most annoying reason of all is where insurers have applied substantial increases because of drivers' ages. Pensioners, who have limited incomes, are bearing the brunt of unreasonable motor insurance increases. I recently dealt with an elderly constituent whose insurance had increased by almost 50%, which amounted to a rise of €400, for no other reason than his age. Clearly, it does not pay to be elderly. These exorbitant insurance increases will have a devastating effect on elderly people living in rural areas who are dependent on their car to go shopping, attend the doctor and visit family, thereby increasing the likelihood of their being isolated from the local community.

It will also impede their ability to do the most basic of tasks. This will have a serious effect on their mental well-being and quality of life. The problem in this context is not the elderly. They have proved to be safer drivers and less likely to drink and drive, take illegal drugs or speed. Statistics have shown that licence holders over the age of 60 represent a tiny percentage of those who have received penalty points.

Will the Minister ensure that the needs of elderly people with regard to car insurance are taken into account by the cost of insurance working group? What steps will the working group take to end the discrimination against the elderly? Will the working group also give consideration to the recommendation in the report of the Joint Committee on Finance, Public Expenditure and Reform and the Taoiseach on the rising cost of motor insurance that insurance companies be compelled to inform the consumer whether they have taken into account the mandatory medical assessments of drivers over the age of 70 when calculating insurance premiums and where insurance companies have disregarded medical assessments, they should clearly state the reason for doing so.

Other research in Europe has shown that children involved in crashes where their grandparents are driving are at half the risk of injury compared to when their parents are driving. It is also evident that if an older person is driving a car that is ten years old or older, they will be hit with a double whammy in that they will incur a loading on their premium. This is a serious issue. It affects, in particular, people living in rural areas. Age Action Ireland has recognised this problem and it has quoted a number of cases where this practice has taken place and it has named those cases.

I ask the Minister of State to consider this issue and to come back to me with some solutions or to let me know how these insurance companies can be dealt with. It is a scandal that older people, who have given so much service to this country, are ending up being penalised when they reach a certain age.

Catherine Byrne (Dublin South Central, Fine Gael)
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I thank the Deputy for raising this issue. Debating topics such as this is important, but it is also essential to be clear on the matter of responsibilities. The Minister for Finance is responsible for the development of the legal framework governing financial regulation. Neither he nor the Central Rank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits

member states from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, the Minister is not in a position to direct insurance companies as to the pricing level or terms and conditions that they should apply to particular categories of individuals.

That is not to say that the Minister, or his Department, is not concerned about issues such as that raised by the Deputy. Therefore, Department of Finance officials contacted Insurance Ireland regarding the specific issue which the Deputy has outlined, given the context of the latest consumer price index data indicating that overall average motor insurance costs have decreased by 15.2% since peaking in July 2016. Insurance Ireland responded to the Department’s query as follows:

The premium charged by an insurer is due to a large number of underwriting criteria which determine the nature of the risk and the resultant premium. One of these rating factors would be the age of the person; however, this is only one factor. It would be recommended that the consumer should request a breakdown of the premium for clarification in the calculation of the premium.

Some of the other rating factors used by insurers include the type and age of the vehicle, driving experience, claims record and penalty points of the driver, the number of drivers, how the vehicle is used, and the location where it is normally stored. My understanding is that insurers do not all use the same combination of rating factors - in addition to which, they also price in accordance with their own past claims experience - and as a result prices and availability of cover vary across the market.

In this regard, the Deputy should note that the Competition and Consumer Protection Commission website has an informative section regarding the purchase of car insurance. This can be found on the consumer section of the CCPC’s website. One of the tips listed on the website to help cut costs is to "shop around" and to "always get quotes from several insurance providers when you need to get or renew insurance”. A checklist for "motor insurance shopping around” is also provided.

As the Government is concerned about the matter raised, and sees the importance of keeping the cost of insurance at sustainable but not exorbitant levels, departmental officials will continue to monitor this matter and to discuss same with Insurance Ireland as part as the Department’s ongoing work in regard to the cost of motor insurance generally. The co-ordinating of the implementation of the 33 recommendations from the report on the cost of motor insurance is obviously a key component of this work. It is envisaged that the cumulative effect of the completion of the report’s action plan will be that the current trend towards greater stability in the pricing of motor insurance generally is maintained and that the objective of delivering fairer premiums for all consumers, including older drivers, can be achieved.

Dessie Ellis (Dublin North West, Sinn Fein)
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It is disappointing to hear that we have to rely on the market and the insurance companies. Motor insurance premiums vary considerably from company to company. We all have had experience of that. It is scandalous to see elderly people coming into my clinic and breaking down because of the pressure they have been put under in terms of them being concerned about being able to continue to drive and having heard that their insurance premium will double in price. I do not accept that we do not have a role in this because we do not interfere in these matters and that the Minister for Finance or the Central Bank does not have a role in dealing with this issue. They should be raising this issue with the insurance companies. There is no reason Ministers could not make representations pointing out that this practice is unacceptable. It is too serious an issue for many people for us not to act.

The Minister of State drew attention to the competition website where guidelines can be found. We have all had experience of searching for guidelines and having to go from one Department to another, but at some stage somebody in authority has to say to the insurance companies that they cannot do what they are doing. People get a breakdown of their insurance premium and companies have various reasons for adding a loading in different areas. It is obvious in a number of cases that elderly people are being loaded disproportionately compared to other motorists. That is unacceptable. Those who need their cars most are the elderly as they may be living in the middle of rural Ireland and have no public transport available and no other means of getting from A to B. They have to visit their families, which is important for their mental well-being. This is a major issue. It is disappointing that we do no have mechanism for dealing with this issue and that it is being kicked to touch and from Department to Department. That is very disappointing.

Catherine Byrne (Dublin South Central, Fine Gael)
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The Minister for Finance is concerned that there are suggestions of unfair loading elderly people's premiums, in particular, and he will continue to seek further information to see if this is a widespread issue. In the context of the general fall in the price of insurance premiums, it would be, in the Minister's view, unacceptable if this is the case. Accordingly, departmental officials who have already engaged with Insurance Ireland on this topic will maintain the contact over the coming weeks.

I have been contacted by a number of older people also who have found that their premiums have been loaded and they have been given different quotes from different companies. I always suggest to them that they should seek quotations from different companies. Some of those people have come back and told me that they have managed to get a lower premium. I will convey the Deputy's concerns to the Minister.