Charlie McConalogue (Donegal, Fianna Fail)
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110. To ask the Minister for Finance the regulations that are in place for monitoring house insurance prices; his views on a matter (details supplied); if he will ensure that measures will be taken to prevent house insurance costs from rising; and if he will make a statement on the matter. [31337/17]

Paschal Donohoe (Dublin Central, 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 or terms or conditions that they should apply in particular cases.

The Deputy will note that the Cost of Insurance Working Group looked at this issue in the context of its work on motor insurance and made a recommendation about the need for insurers to inform consumers of the reasons for large increases in quotations. Notwithstanding that this will apply only to motor insurance business, it may also have an impact on other lines of business.

With regard to the cost of home insurance, the Central Statistics Office reports on price movements in relation to insurance connected with dwellings as part of their Consumer Prices Monthly Series. According to the official data from the Central Statistics Office, the cost of insurance connected with dwellings has remained largely stable over the last five years increasing and decreasing at various times. At the beginning of this year it was 6.2% higher than it had been at the beginning of 2012. February 2017 saw increases month-on-month of 2.5% and this has been followed by three months without a price movement. Comparably, for the same period the cost of motor insurance was 48% higher in January 2017 than it had been in January 2012, and at times early last year had been close to 60% higher. There is also anecdotal evidence that the cost of employer liability insurance and public liability insurance has risen at a significantly higher rate than that of home insurance.

In conclusion, therefore, on the basis that there is a need to prioritise the implementation of the cost of insurance motor report and also complete the public liability and employer liability review, I do not propose to look at the issue of the cost of home insurance at this point in time within the context of the Cost of Insurance Working Group's work.

Nevertheless, my Department will continue to monitor the cost of home insurance as part of its general oversight of the insurance sector.