Terence Flanagan (Dublin North East, Independent)
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77. To ask the Minister for Finance if householders face paying more in premiums as a result of what happened at RSA Insurance; and if he will make a statement on the matter. [55016/13]

Michael Noonan (Limerick City, Fine Gael)
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At the outset, I would point out that the calculation of annual premium rates is a commercial decision for the insurance company in question. Neither I, as Minister for Finance, nor the Central Bank of Ireland, can require a company to change its rates or prohibit a company from doing so. The decision to provide any specific form of insurance cover and the price at which it is offered is based on the assessment an insurer will make of the risks involved. This risk assessment process which insurance companies apply is essential if a company is to be able to provide its services over the longer term and continue to remain solvent.

I am aware of continuing strong competition within the insurance industry which should have an influence on limiting price increases and I have informed the industry that it must be a priority for them to ensure that insurance cover is provided as competitively as possible consistent with long term commercial sustainability and viability. There is a delicate balance to be struck between ensuring the long-term sustainability of the insurance industry and at the same time making sure that the consumer obtains good value for money.

Consumer issues are covered by the Central Bank's Consumer Protection Code which amongst other things sets out a series of general principles about how financial service firms (including all insurance companies) should interact with their customers. The Code, however, does not prohibit or restrict an insurance company from increasing its annual premium rates.

In relation to RSA, the RSA Group has now injected a total of €260m capital into RSA Insurance Ireland Limited (RSAII) in November and December. This capital support ensures that RSAII’s solvency margin remains in excess of 200%. The Central Bank, as Regulator, remains in close and regular dialogue with RSAII.