Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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87. To ask the Minister for Finance his views that the motor insurance companies are operating a regime of age discrimination with increased premiums for the young and the old and whether such discrimination is illegal under the Equal Status Act 2000; and if he will make a statement on the matter. [17806/16]

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. Insurance companies are required under European law to price in accordance with risk and neither I, nor the Central Bank of Ireland, can 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.  This has been acknowledged by the European Court of Justice. 

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 motor insurers in making decisions on whether to offer cover and what terms to apply, 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.

The Equal Status Acts prohibit certain kinds of discrimination in the provision of goods, facilities and services, obtaining or disposing of accommodation and in relation to educational establishments.  The legislation protects against discrimination on nine specific grounds, including age.

However, the legislation also provides that people can be treated differently on any grounds in relation to insurance, covering annuities, pensions, insurance policies and other matters relating to risk assessment but only if the differences are based on actuarial or statistical data or other relevant underwriting or commercial factors and are reasonable and not based on gender.

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 (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.