Brendan Smith (Cavan-Monaghan, Fianna Fail)
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191. To ask the Minister for Finance the measures he proposes to implement to deal with the escalating costs of insurance premiums; if his attention has been drawn to the fact that there have been unacceptable increases in insurance costs for some sectors such as licensed premises; his views on the survey carried out by an organisation (details supplied) showing that 37% of publicans had encountered difficulties in securing insurance cover for their premises and the substantial increase in insurance costs for the majority of such premises; and if he will make a statement on the matter. [35189/16]

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, can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. 

This inability to intervene in such matters is reinforced by the EU framework for insurance which 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. 

However, I do accept that it is possible for the State to play a role in helping to stabilise the market. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair.  The initial focus of the Working Group is on the factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses. 

It is likely however that because of some of the common factors underlying all  insurance lines that many of the recommendations being considered will also address the difficulties being experienced in the cost and availability of other types of insurance, including public liability insurance.

The Working Group has met with a number of stakeholders during the course of its work, including the representative body that the Deputy refers to.  This consultation included a presentation of to the Minister for State of its survey findings.

Finally, it should be noted that at the end of October 2016, the Working Group provided me with an initial set of emerging recommendations.  Since then, the Working Group has been working to finalise the Report and developing an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.  The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation.