Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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177. To ask the Minister for Finance his views that some insurance companies are engaging in excessive profiteering and price hikes in premiums (details supplied); and if he will make a statement on the matter. [31000/14]

Michael Noonan (Limerick City, Fine Gael)
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In my role as Minister for Finance I have responsibility for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland, as regulator, interfere in the pricing of insurance products.  The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on a proper assessment of the risks they are accepting and the making of adequate provisioning to meet these risks. 

The EU framework for insurance expressly prohibits Member States adopting provisions requiring the prior approval or systematic notification of certain matters including general and special policy conditions, scales of premiums and, for life insurance, technical bases used for calculating scales of premiums. Furthermore, in the context of non-life insurance, the EU framework provides non-life insurers with the freedom to set premiums, as has been acknowledged in case law by the European Court of Justice (Case C-518/06). In this regard, Member States may not require non-life insurance undertakings to make prior notification or seek prior approval of proposed increases in premium rates, except as part of a general price-control system.

The Central Bank does not regulate premiums in the insurance market. Insurance companies consider a number of risks when determining the premium for a proposed insurance policy, whether that is a general insurance policy such as motor or home insurance, or a life assurance policy. A premium is based on the actuarial calculation of risk. For example, a consumer with penalty points may be subject to a higher premium on motor insurance than a consumer with no penalty points. Similarly the claims history of the consumer seeking the insurance is considered. An increase in claims in the geographical location of the asset to be insured can also impact on the premium cost.

Consumers are encouraged to shop around at the time of insurance renewal. The National Consumer Agency has information that may assist a consumer to shop around it can be found at .

In the case of motor insurance only, if a consumer believes that the quoted premium is so high as to be, in effect, a refusal of insurance, then the Declined Cases Committee at Insurance Ireland may be able to assist the consumer. The current Declined Cases Agreement was drawn up in 1981 and is adhered to by all motor insurers in Ireland. I am informed that under the agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance, if he/she has approached at least three insurers and has not been able to obtain cover from them.  I understand that Insurance Ireland is also making information available to those who have queries, complaints or difficulties in relation to this matter through their service at (01) 676 1914 or by email at .