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

As Minister for Finance, I am concerned that there should be a stable insurance sector and that risks to policyholders and to the wider financial system are limited.  I am aware of reports on the increasing cost of motor insurance.  However, the ability of the Government to influence insurance pricing is limited as insurance companies are required under European law to price in accordance with risk and neither I, as Minister for Finance, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing of insurance products. 

While the provision and the pricing of insurance policies is a commercial matter for insurance companies, this does not preclude the Government from introducing measures that may, in the longer term, lead to a better claims environment that could facilitate a reduction in claims costs.

The question of the cost of insurance is a complex one involving a number of Government Departments, State Bodies and private sector organisations.  While I do not intend re-constituting the Motor Insurance Advisory Board at this time, I have asked my officials to examine the factors which contribute to increasing costs of insurance. 

This work is part of an overall review of policy in the insurance sector which my Department is carrying out in consultation with the Central Bank and other Departments, Agencies and external stakeholders.  The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector. 

The Review of Policy in the Insurance Sector will continue over the coming months and is expected to be completed by the end of this year.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context | Oireachtas source

81. To ask the Minister for Finance if it is the normal procedure for insurance companies which provide insurance cover for commercial vehicles to carry out policy reviews to ascertain what the vehicle is being used for and what goods are carried in the vehicle and to identify the owner of the vehicle; and if he will make a statement on the matter. [12130/16]

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

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, may interfere in the provision of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing, or terms and conditions of an insurance product.  

The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. 

Insurance Ireland, which represents the insurance industry in Ireland, has informed me that insurers and insurance brokers often conduct audits of sample cases on their books to ensure that the details on their records are correct. These would include all types of vehicles including commercial vehicles. Insurance Ireland stated that this exercise benefits the insured as it ensures that the risk details under the policy are correct and avoids any controversy in the event of a claim.