Stephen Donnelly (Wicklow, Fianna Fail)
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259. To ask the Minister for Finance if his attention has been drawn to situations in which, when applying for insurance, a driver's experience is not taken into account in circumstances in which the person was a named driver for a number of years but has spent time abroad in intervening years; the rationale for the support of this practice; and if he will make a statement on the matter. [19849/17]

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 position 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. Consequently, I am not in a position to direct insurance companies as to the pricing level that they should apply to particular categories of individuals.

I am advised that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. These terms can include the driving experience of the driver, as well as the type and age of car, the age, claims record and penalty points of the driver, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience.

However, 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 published in January 2017. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation.

My attention has been drawn to the difficulties faced by drivers who have spent time abroad and subsequently lose recognition for previous driving experience. In order to tackle this issue, the Report recommends that a standard protocol be put in place for insurance companies in order to ensure a greater consistency of treatment for returning emigrants. By the second quarter of this year, insurers are to implement policies to accept driver experience from abroad when a person has previous driving experience in Ireland and is coming from a country that drives on the left side of the road (e.g. UK), and take full account of the experience in that country and previous relevant Irish experience when pricing policy. By the end of the year, this protocol is to be extended to take appropriate account of driving experience gained in countries which drive on the right hand side of the road. My Department is working with Insurance Ireland to ensure that these actions are implemented by the deadlines set down in the Report.

Finally, the Deputy should note that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Insurance Ireland can be contacted at feedback@insuranceireland.euor 01-6761914.