Terence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance his views on a matter (details supplied) regarding insurance; and if he will make a statement on the matter. [41442/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

At the outset the Deputy should note that neither I as Minister for Finance nor the Central Bank can prohibit or restrict an insurance company from increasing its annual premium rates, as this is a commercial decision for the company in question. Therefore it is not possible to introduce measures which will direct insurance companies to price in a particular way in response to the European Court of Justice (ECJ) Test-Achats ruling prohibiting gender-differentiation in insurance. The background to this matter as you are aware is that in its decision of 1st March 2011 the ECJ declared invalid, with effect from 21 December 2012, Article 5(2) of the council directive 2004/113/EC of 13 December 2004. The effect of this ruling is that all private insurance contracts concluded for the first time from 21 December 2012 as well as any agreements between parties to extend contracts from that date are prohibited by law from differentiating by gender on price or benefits.

The Department of Justice and Equality is responsible for making the necessary legislative amendments to the Equal Status Act to ensure that they reflect the judgement of the European Court of Justice. The Minister for Justice and Equality expects to announce shortly the details of legislation to amend the Equal Status Acts to reflect this ruling.

In practice, the impact of unisex insurance premium rates may vary depending on the product, reflecting the take-up by each gender and the corresponding risk profile. However, the exact movement in premiums after 21 December 2012 is difficult to predict.

The Government is aware of the concern of many people that insurance premium costs may increase and as a result the Government agreed on 5 June 2012 that the Minister for Justice and Equality, the Minister for Finance and the Minister for Jobs, Enterprise and Innovation would consider what actions their respective Department might take to address the potential adverse consequences of this ruling. This matter is still being examined as always. In the meantime the best advice to the customer is to shop around.