Niamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

98. To ask the Minister for Finance the measures that have been taken to meet and engage with insurance companies here regarding excessive premiums being charged to consumers, particularly in counties Cavan and Monaghan. [35315/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 that 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.  A broad range of issues affecting the cost and availability of motor insurance are being examined by the Working Group.

The Cost of Insurance Working Group has met ten times to date and will continue to meet until the end of the year. The work is being progressed through four subgroups.  These subgroups have been meeting on a weekly basis since their establishment on 1st  September 2016.

The Working Group and the four subgroups have engaged in a consultation process and has met with and heard from a variety of relevant stakeholders including: Insurance Ireland, the Irish Brokers Association, AA Ireland, Auto Records Limited, the Consumers Association of Ireland, the Law Society, the Bar Council, Irish Road Haulage Association, the Car Rental Council, the Freight Transport Association of Ireland, the National Transport Authority, the Motor Insurers' Bureau of Ireland and Tiomanai Tacsai na hEireann.

In addition, the Working Group has engaged with relevant insurance companies as part of this consultation process. The views and submissions of insurance companies, and all those from interested parties, are being considered as part of the ongoing work of the Working Group.

The Working Group provided me with an initial set of emerging recommendations at the end of October 2016. Since then, the Working Group has been working to finalise their Report and to develop 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.

From the emerging recommendations presented and the consultations carried out since, it is likely that the report will address nine key areas, with in the region of 40 recommendations in total.