Imelda Munster (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

215. To ask the Minister for Finance if his attention has been drawn to the fact that insurance companies are refusing to offer persons a quote on the basis they have not been driving long enough or consistently enough despite the person having had a full driving licence for ten years; and if he will make a statement on the matter. [26828/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 factors may include the level and consistency of driving experience, and how recent such driving experience is.  Other factors include the age and the type of car, as well as 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 the price and availability of cover varies across the market.  In addition, insurance companies will price in accordance with their own past claims experience. 

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.eu or 01-6761914.

Imelda Munster (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

216. To ask the Minister for Finance if his attention has been drawn to the fact that insurance companies are giving non-eligibility under acceptance criteria as the reason for their refusal to insure a vehicle for a person without stating specific details for refusal; and if he will make a statement on the matter. [26829/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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. 

It should be noted that the Central Bank is responsible for the day to day supervision of the insurance industry. In that regard, it has two specific mandates.  Firstly, it is responsible for the prudential supervision of insurance companies it has authorised by seeking to ensure that such firms remain solvent.  Secondly, it is responsible for the supervision of conduct of business in Ireland, also referred to as consumer protection.

In relation to your question, the Central Bank of Ireland has informed me that its Consumer Protection Code includes rules relating to the provision of information to consumers by regulated firms. 

Provision 2.6 of Chapter 2 (General Principles) requires that a regulated entity must ensure that, in all its dealings with customers and within the context of its authorisation, it makes full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer.

In the context of this question, Provision 4.39 of the Consumer Protection Code is particularly relevant and provides as follows:

“Where an insurance undertaking refuses to quote a consumer for a motor or property insurance, it must, within five business days of the refusal:

1. In the case of motor insurance, provide the consumer with its refusal its reason for refusing cover, on paper or another durable medium, and notify the consumer of their right to refer the matter to the Declined Cases Committee and the method of doing so.”

The Central Bank of Ireland also informed me that it “expects that when an insurer provides a reason for refusal to quote a consumer for motor insurance in accordance with Provision 4.39, it does so in a way that seeks to inform the consumer”.

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 will also provide further information in respect of the Declined Cases Agreement and can be contacted at feedback@insuranceireland.eu or declined@insuranceireland.eu or 01-6761914.