Dara Calleary (Mayo, Fianna Fail)
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167. To ask the Minister for Finance if insurance companies can refuse persons over 75 years of age [24543/17]

Michael Noonan (Limerick City, Fine Gael)
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I understand following consultation with the Deputy's office that it is the provision of motor insurance specifically which is being referred to in this question.

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, for example, the age of the driver, the type and age of car, the claims record, driving experience and penalty points of the driver, the number of drivers and how the car is used.  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.

There are two other points that the Deputy should note:

(i) the prohibition of discrimination in the provision of goods or services on the basis of age is enshrined in law through the Equal Status Act 2000, and

(ii) Clause 5 of the 2002 Declined Cases Supplemental Agreement - which amended the original 1981 agreement made between the insurance industry and the then Minister for Industry, Commerce and Tourism - imposes upon motor insurance providers an obligation that “no Insurer shall decline a risk on grounds of age of driver alone”.  

Finally, you should be aware 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.eu or 01-6761914.