Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

89. To ask the Minister for Finance his plans to review household insurance policies in view of the losses suffered by businesses and households as a consequence of Storm Ophelia; and if he will make a statement on the matter. [44792/17]

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, however I cannot 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 policies nor to direct insurance companies as to the pricing level or terms or conditions that they should apply in particular cases.

The Deputy should note that all insurers operating in the Irish market are regulated under conduct of business rules by the Central Bank of Ireland. Consequently, each is required to comply with the Consumer Protection Code which sets out the rights of consumers, including how claims are handled.

In relation to the bringing to the attention of policyholders their rights in relation to insurance claims arising from Storm Ophelia, the Competition and Consumer Protection Commission (CCPC) has updated its website accordingly and the information can be found at: .

In addition, my officials have been in touch with Insurance Ireland about this matter. In response they have indicated that business insurance policies will provide cover for storm damage to premises and stock. Such policies will also cover for business interruption which is triggered when there has been storm damage to the premises. They have advised, however, that it is important for businesses to contact their insurance company or broker after the event and guidance will be provided on making a claim.

With regard to household buildings and contents insurance, Insurance Ireland has also advised that policies will cover damage caused by storms. Insurers will usually pay for the cost of temporary repairs, so policyholders should keep receipts. Insurers will also usually pay for the cost of alternative accommodation, if the home has become uninhabitable. However, householders should check the full extent of their policies and contact their insurer or broker for further information.

Finally, in respect of household insurance generally, 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, with small increases and decreases at various times. At the beginning of this year it was 6.2% higher than it had been at the beginning of 2012. On a month-on-month basis, January and February 2017 saw increases of 2.7% and 2.5%, respectively, and this was followed by four months without a price movement. There were subsequently decreases of 2.5% and 0.1% for July and August, respectively, and then no price movement again in September.