Clare Daly (Dublin Fingal, Independent)
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98. To ask the Minister for Finance to engage in consultation with Insurance Ireland regarding the potential for car insurers to offer discounts to motorists who have had dashcams fitted in their cars. [13912/16]

Michael Noonan (Limerick City, Fine Gael)
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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, including the granting of discounts, 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. 

I would add that my Department is currently conducting a Review of Policy in the Insurance Sector in consultation with the Central Bank and Government Departments, Agencies and other stakeholders, including the insurance industry. 

This Review will include an examination of the factors contributing to the cost and availability of insurance. Work on the Review will continue over the coming months.

Clare Daly (Dublin Fingal, Independent)
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99. To ask the Minister for Finance his views on a car insurance company discriminating on grounds of profession relating to charges for annual insurance cover. [13913/16]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. 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, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing or the provision of insurance products.

The EU framework for insurance expressly prohibits Member States adopting rules which require the prior approval or systematic notification of certain matters, including general and special policy conditions and scales of premiums. Furthermore, the EU framework provides non-life insurers with the freedom to set premiums.

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.

Insurance Ireland has informed me that motor insurers make their own individual decisions on whether to offer cover and what terms to apply. They use a combination of rating factors in doing this, such as the age of the driver, the type of car, claims record, driving experience, number of drivers, how the car is used, etc. Insurers do not all use the same combination of rating factors, prices vary across the market and consumers are free to choose. 

As stated earlier the ability of the Government to influence insurance pricing is limited but, that does not preclude the Government from introducing measures that may, in the longer term, lead to a better claims environment that would facilitate a reduction in claims costs.

My Department has embarked on a review of the insurance sector which is being undertaken in consultation with the Central Bank and other Departments and Agencies. 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.

Finally, in the event that a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland (telephone 01 6761820) quoting the Declined Cases Agreement. Under this Agreement, the Declined Cases Committee of Insurance Ireland deals with cases of difficulty in obtaining motor insurance.