Jackie Cahill (Tipperary, Fianna Fail)
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123. To ask the Minister for Finance if he will address the impact on SMEs of the rising cost of insurance, which if not addressed will result in job losses in an important sector of the economy; and if he will make a statement on the matter. [35514/16]

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. However, as some of the factors are common to all insurance lines, it is likely that many of the recommendations being considered will also address the difficulties being experienced in the cost and availability of insurance in other sectors, including the SME sector.

The Department has received submissions from a number of SME's outlining how the cost of insurance is impacting  them. These submissions have informed and fed into the ongoing work of the Working Group.

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.