Pearse Doherty (Donegal, Sinn Fein)
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97. To ask the Minister for Finance if with regard to whole of life insurance policies, data has been collected on the average premium increases in the latest reviews carried out under the policies; and if he will make a statement on the matter. [23598/16]

Michael Noonan (Limerick City, Fine Gael)
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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.  This would include any post-sale reviews on whole-of-life policies, which are an individual matter for each insurance company and may differ from policy to policy.  There is no role for my Department or the Central Bank in this area.  As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.  Neither I, nor the Central Bank can interfere 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 insurance products. 

It should be noted that consumer issues are covered by the Central Bank's Consumer Protection Code which, amongst other things, sets out a series of general principles about how financial service firms (including all insurance companies) should interact with their customers. The Code, however, does not prohibit or restrict an insurance company from increasing its annual premium rates, as this is a commercial decision for the company in question and is generally determined by such issues as higher claims volumes and the nature of the product.

The Central Bank has informed me that it has not carried out a review of the sale of unit linked whole-of-life products in recent years and it has no current plans to so. However, it considers these products in its risk and evidence-based approach to prioritising its work.  This ensures that it is focussing its resources on those areas where it considers there to be a significant threat to its consumer protection objectives.  This includes carrying out a comprehensive annual consumer risk assessment, whereby it examines each of the retail sectors regulated by the Central Bank to identify current and emerging risks.