Pearse Doherty (Donegal, Sinn Fein)
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165. To ask the Minister for Finance the extent to which motor insurance companies use telematics in determining premiums; if his review of the cost of insurance is examing how telematics could influence prices; and if he will make a statement on the matter. [15583/16]

Pearse Doherty (Donegal, Sinn Fein)
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169. To ask the Minister for Finance if he is aware of and his plans to examine issues causing difficulties for returning emigrants in accessing car insurance, including for commercial purposes; and if he will make a statement on the matter. [15738/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 165 and 169 together.

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation but am prohibited from interfering in the provision or pricing 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.  These are considered by insurance companies on a case by case basis.  Variations in the costs and risks of providing motor insurance cover can vary between different countries. 

With regard to the situation of returning immigrants, Insurance Ireland, which represents the insurance industry in Ireland, has informed me that, in general terms, where there has been no motor insurance in an individual's name and there is a gap of cover of two years or more since their last insurance, the no claims discount is deemed invalid. However, Insurance Ireland has further stated that if the individual can produce confirmation that they were continually insured and are claims free in their own name while they were away, this would be taken into consideration.

Insurance Ireland has also informed me that motor insurers in deciding on whether to offer cover and what terms to apply to cover use a combination of rating factors, 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.  Furthermore, Insurance Ireland has informed me that some insurance companies provide for the use of telematics for customers.

As the Deputy is aware, my Department is currently conducting a review of policy in the insurance sector.  The current phase of this review is an examination of the factors which have led to the significant increase in the cost of motor insurance.  This work will also aim to identify what short-term measures can be introduced to help reduce the cost for consumers and businesses, which may include telematics. The availability of motor insurance for returning emigrants will also be considered as part of this work.

Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. 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, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820quoting the Declined Cases Agreement.