Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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57. To ask the Minister for Finance the measures that can be taken in order that insurance companies provide rebates and premium reductions to customers in the case of a decline of claims costs related to Covid-19; and if he will make a statement on the matter. [17166/21]

Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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This question is for the Minister of State, Deputy Fleming. Will he outline the measures that can be taken in order that insurance companies provide rebates and premium reductions to customers in the case of a decline of claims costs related to the Covid pandemic?

Seán Fleming (Laois-Offaly, Fianna Fail)
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The provision and pricing of insurance products are underpinned by the EU Solvency II Directive insurance framework. Consequently, neither the Minister for Finance nor the Central Bank of Ireland can direct insurance companies as to their business activities, nor can they compel any insurer operating in the Irish market to provide refunds to its customers as this is a commercial matter.

However, working to protect insurance policyholders during and after the Covid-19 crisis remains a priority issue for the Government. As such, it is included in the Action Plan for Insurance Reform. Throughout the pandemic, the Government has consistently called on insurers to treat customers honestly, fairly and professionally, as well as in line with the Central Bank’s consumer protection code.

Both the Minister and I have had extensive engagement with insurers and other key policy stakeholders. In the Minister's meeting with industry representatives, Insurance Ireland, almost a year ago, he called on motor insurers to be proactive and generous towards their customers. He noted what was likely to be a significant reduction in claims due to the travel restrictions then in place. This intervention saw several insurers announcing a range of forbearance measures and motor insurance rebates for policyholders. A variety of methods for offering rebates were used such as cheques being sent out, electronic transfers and vouchers.

As part of a comprehensive stakeholder engagement on the insurance reform agenda, I held a series of subsequent meetings with the main insurers late last year. I met with the chief executives of each of the main insurance companies individually when I again raised the need for industry to respond to both the Government’s ongoing reform agenda, as well as the needs of customers during this pandemic through lowering premiums, continuing to offer forbearance measures, and expanding their risk horizon across various market segments.

Building on this engagement to date, I will be meeting with the insurers individually from next week to discuss their assessment of the new personal injuries guidelines. The industry’s ongoing response to the pandemic will be included on the agenda for these meetings. Both the Minister and I will continue to put our views across on these issues, engaging with insurers and other relevant stakeholders regarding the importance of supporting customers and providing the necessary reliefs throughout this crisis period.

Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I thank the Minister of State for his response.

Part of the issue is when we end up in government we have to say different things. I do not doubt the Minister of State's commitment. As a former Chairman of the Committee of Public Accounts, I know more than anybody that he would be least likely to go native as quickly as others in the past.

The answer prepared for him is that all of these rules are set by Europe, it is a commercial decision for the company and so on. The programme for Government, however, gives a clear commitment on what we will do to reduce the insurance costs of companies all over the country, as well as the reduction in personal injury pay-outs. For that, we need the support of the Judiciary. When we raise that, we will be told it is a matter of separation of powers and we cannot get in there. This is frustrating for the people. The people want their Government to take action that will lead to an outcome that benefits them.

Seán Fleming (Laois-Offaly, Fianna Fail)
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A number of key achievements have already happened in the past few months since we went into government and as a result of the Action Plan for Insurance Reform. We established a new office to promote competition in the insurance market which I chair. That entails meeting the individual companies which operate in the State to ask them to increase their risk appetite. That means for them to go into sectors in which they are not currently.

I have met with some companies that have already withdrawn from certain sectors of the Irish economy because of the unpredictable nature of awards. The personal injury guidelines that were published about four weeks ago are introducing certainty. The original book of quantum operated by the Personal Injuries Assessment Board, PIAB, will now be replaced by these judicial guidelines. Just last week, this House and the Seanad passed those new guidelines into law and they will be commencing very shortly.

Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I welcome the news about the group the Minister of State chairs. Ultimately, the Government needs to consider the establishment of a State bank, which was not far away from Fianna Fáil, or indeed Fine Gael, policy in the past. Both the Minister and the Minister of State need to unite around the Cabinet table and look at the establishment of a State financial services provider, be that in banking, which we will go into another day and I had the opportunity to do so some weeks ago, or insurance. If there is one way of regulating and ensuring fair conditions in a market, it is to be the State provider of competition in that market for a period. We have done it before with ACC and ICC. The model worked and it can work again. It has never been more necessary than it is today.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I acknowledge the Deputy's points about the State's involvement in insurance. Through the State Claims Agency we have very extensive involvement in settling insurance claims taken against any public body, as well as Irish public bodies that are not State bodies but are connected very closely to the local authorities, and it covers all claims against local authorities and education and training boards. The State itself is directly involved in settling claims and we have first-hand experience of that.

The private insurance market is a matter for the private sector. The need for a State bank is an interesting point and the Deputy referred to the ones we owned previously. It must be stated we are the majority shareholder in AIB. We own well over 70%. We are also the majority shareholder in Permanent TSB and own well over 70% of that. We have a very high stake in Bank of Ireland. There is probably no other country in Europe where the state has such an ownership level in all the major banking and financial institutions. When it comes to having a State bank, we are involved in every single one of them.