Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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158. To ask the Minister for Finance the position regarding plans to meet and engage with insurance companies here regarding excessive premiums being charged to persons, particularly in counties Cavan and Monaghan. [21794/17]

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 review individual cases nor to direct insurance companies as to the pricing level that they should apply to particular categories of individuals.   

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.  

Meeting the Report’s objective of delivering fairer motor insurance premiums for consumers without unnecessary delay requires the cooperation and commitment of all relevant bodies and stakeholders, none more so than the insurance industry itself.  In this respect, there has been continuous ongoing engagement between my Department and the Working Group with Insurance Ireland on the implementation of the recommendations since the publication of the Report in January.  Insurance Ireland, as the representative body of the insurance industry in Ireland with approximately 95% of insurance companies operating within the country being members, is a key party in respect of the implementation of many of the recommendations.  

In parallel with the implementation of the Report’s recommendations, the Working Group in its second phase is currently examining the Employer Liability and Public Liability insurance sectors. Consultation with stakeholders is ongoing, and will also involve an appropriate engagement with the insurance industry.