Michael Healy-Rae (Kerry, Independent)
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123. To ask the Minister for Finance his views on correspondence (details supplied) regarding motor insurance costs; and if he will make a statement on the matter. [33647/16]

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, have the power to direct insurance companies on the 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.  

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 the need to provide for adequate provisioning to meet those risks. 

My Department has embarked on a review of policy in 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.  

As part of that Review, I have established a Cost of Insurance Working Group, chaired by the Minister of State Eoghan Murphy T.D. This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short-term, medium-term and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The initial focus of the Working Group is the issue of rising motor insurance premiums, which includes the difficulties facing the taxi sector. 

At the end of October 2016, the Working Group provided me with an initial set of emerging recommendations. From November to December, the Working Group will finalise the Report and develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.

Finally, it may be of interest to your constituent that 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 6761820, quoting the Declined Cases Agreement.