Dara Calleary (Mayo, Fianna Fail)
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95. To ask the Minister for Finance the reason there is a limit cover on bicycle insurance if the bicycle was bought abroad. [30349/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am not in a position to outline the specific reasons why companies may require such a limit on bicycle insurance.  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 insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply.  They do not all use the same combination of rating factors, and as a result prices vary across the market and consumers are accordingly free to choose whatever product best meets their needs with price obviously being a relevant factor.  

Finally, the other factor which is relevant to this matter is that insurance company’s price in accordance with their own past claims experience, and this may be another reason why there is a limit on cover for bicycle insurance.