Brendan Griffin (Kerry, Fine Gael)
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182. To ask the Minister for Finance the reason professional drivers are incurring higher insurance premiums on their private vehicles due to their occupation; if his action plan will address this anomaly; and if he will make a statement on the matter. [9755/17]

Michael Noonan (Limerick City, Fine Gael)
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It is important to note that neither I nor the Central Bank of Ireland can direct insurers to provide cover to a particular category of drivers at a particular price as this is a matter of a commercial nature, and would be contrary to EU rules.

In providing motor insurance, insurers adopt a risk based approach to determining premiums.  In simple terms, they look at an application and make a determination of what the likelihood of a claim is and price accordingly.  Their previous claims history will heavily influence their decisions in this area.  

Amongst the risk factors insurers look at are how the car is used and the occupation of the driver, as well as, for example, the age of the driver, the age of the car, the location of risk, driving history, vehicle details (e.g. engine size), medical conditions.

I understand following consultation with your office that the term "professional drivers" in this context refers to individuals who accumulate above-average mileage figures in their private vehicles due to the nature of their job. Therefore on the basis of how insurers' assess their risks such a driver is going to represent in general a higher level of risk compared with a person who drives a short distance to work every day.

The Deputy should note that while I cannot directly intervene in pricing of insurance products, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance.  Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. The Report on the Cost of Motor Insurance was finalised in December 2016, approved by Cabinet on January 10 2017, and subsequently published.  It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation and work on carrying these out is already well underway.

While there is no single simple solution to effect a reduction in the cost of insurance, when taken cumulatively, the implementation of these 71 actions can deliver fairer premiums for consumers, including drivers who accumulate above-average mileage figures due to the nature of their job. However, the Deputy should be aware that even in a lower price environment, there will in general be a differential in the price of insurance for professional drivers compared with those doing less mileage due to the higher risk they pose because of the greater amount of time they spend on the road.