Written answers

Thursday, 3 November 2016

Photo of James LawlessJames Lawless (Kildare North, Fianna Fail)
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52. To ask the Minister for Finance if his attention has been drawn to the soaring motor insurance costs for emigrants returning back to reside here; the efforts his Department is making to ease these costs; and if he will make a statement on the matter. [33109/16]

Photo of Michael NoonanMichael 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 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.  

However, 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. Consequently, I have established a Cost of Insurance Working Group chaired by Minister of State Eoghan Murphy T.D. The Working Group brings together all the relevant Departments and Offices involved with the process.  Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.

The core areas being examined by the Working Group in the first phase are:

- The motor insurance sector generally, at present and in recent years;

- The effects of legal costs and litigation processes on insurance costs;

- The current claims compensation arrangements and the cost of claims;

- Insurance data and information;

- The impact of accident rates;

- The impact of unlawful activity on the insurance sector; and

- Other market issues.

A number of additional issues which impact on consumers and the business sector in relation to motor insurance are also being considered.  These include the issue motor insurance costs for emigrants returning back to reside here.

On 28 October, the Working Group provided the Minister for Finance with an update report setting out the recommendations emerging from its work to date.  During November and December, the Working Group will be developing an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.

It may be of interest to the Deputy that a person, who is unable to obtain a quotation for motor insurance or who feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, can contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820quoting the Declined Cases Agreement.

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