Tommy Broughan (Dublin Bay North, Independent)
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251. To ask the Minister for Finance the measures he will take to address the high cost of motor insurance for young drivers; if he will consider re-establishing the Motor Insurance Advisory Board to investigate the issue; and if he will make a statement on the matter. [13416/16]

Michael Noonan (Limerick City, Fine Gael)
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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 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.

Tommy Broughan (Dublin Bay North, Independent)
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252. To ask the Minister for Finance the estimated cost of restricting the 2% levy on non-life motor insurance policies to the first €1,000 of the premium; and if he will make a statement on the matter. [13417/16]

Tommy Broughan (Dublin Bay North, Independent)
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253. To ask the Minister for Finance if he will restrict the 2% levy on non-life motor insurance policies to the first €1,000 of the premium in view of the increasing amounts being charged, particularly to young drivers, and as such a measure would make a contribution to reducing the cost of motor insurance for younger drivers; and if he will make a statement on the matter. [13418/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 252 and 253 together.

In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. 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 accepting and adequate provisioning to meet these risks. 

The purpose of the Insurance Compensation Fund (ICF) is to provide a certain minimum level of protection for non-life insurance policyholders should an insurance company go into liquidation.

 The Fund also allows insurance company administrators to apply to the High Court for funding, where necessary, in order to enable them to meet their financial obligations as they arise.

Section 6 of the Insurance Act 1964 provides that the Central Bank of Ireland has responsibility to carry out an annual assessment of the needs of the Fund and, where it is of the opinion that the state of the Fund is such that financial support should be provided for it, the Bank is allowed to determine an appropriate contribution to be paid to the Fund by each insurer in relation to insured risks in the State. The Central Bank is independent in this assessment and I, as Minister for Finance, do not have a role in deciding annually on the amount of the levy. The ICF levy is currently charged as 2% of the aggregate of total gross written premium of each non-life insurer, the maximum level the Central Bank is allowed to set the levy as per Insurance Act 1964.

It should be noted that the levy is charged on the insurance industry and not on individual policyholders and, therefore, it is a matter for each insurance company to decide the amount of the levy, if any, that they wish to pass on the individual policyholder. In practice, it would appear that most insurers pass the levy directly onto their policyholders. 

Data in respect of individual insurance premiums are held by the insurance companies.  My officials have consulted with Insurance Ireland regarding the availability of data regarding the cost of individual insurance premiums and are advised that because of competition law and data protection regulations, Insurance Ireland does not publish information about the size of premiums charged by individual insurance companies.  It is not possible, therefore, to establish the cost of restricting the levy to those motor insurance premiums in excess of €1,000.

Tommy Broughan (Dublin Bay North, Independent)
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254. To ask the Minister for Finance the number of insurance policyholders who have secured motor insurance policies through the declined cases agreement in 2013, 2014 and 2015; and if he will make a statement on the matter. [13419/16]

Tommy Broughan (Dublin Bay North, Independent)
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255. To ask the Minister for Finance to provide details on the membership of the declined cases agreement committee; and if he will make a statement on the matter. [13420/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 254 and 255 together.

Insurance Ireland, which represents the insurance industry in Ireland, operates a Declined Cases Agreement, which all motor insurers in Ireland are required to sign up to as part of their authorisation requirements.

I have been informed by Insurance Ireland that the agreement is administered by a Committee made up of representatives of each of the companies who have signed the agreement. The Committee also includes a representative of the Consumers' Association of Ireland and the Financial Services Ombudsman's Bureau as external observers. 

Insurance Ireland has informed me that number of cases for 2015 is not yet available but, the number appears to be marginally higher than 2014.  The following table sets out the number of cases dealt with under the Declined Cases Agreement in the previous three years.