Michael Healy-Rae (Kerry, Independent)
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193. To ask the Minister for Finance if he will address a matter (details supplied) regarding no claims bonuses for returning emigrants; and if he will make a statement on the matter. [24294/17]

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.  

Furthermore, 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 type and age of car, as well as the age, driving experience, 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.  

Notwithstanding the above, I am aware of the matter raised by the Deputy and I 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.  

Recommendation 6 of the Report, in particular, aims to address the problems faced by returning emigrants regarding the recognition of no claims bonuses through the introduction of a standard protocol for insurance providers, to ensure a greater consistency of treatment for returning emigrants.  This is required to be in place by the end of 2017.

Also the Deputy should note that by Q2 2017, insurers are being asked to implement procedures when pricing a policy to enable the acceptance of 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 road. By Q4 2017, insurers are being asked to implement a similar procedure in relation to experience gained in a country that drives on the right hand side of the road. Insurance Ireland will submit a report to my Department on the implementation of these procedures in Q2 and Q4 2017.