Brian Stanley (Laois, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

79. To ask the Minister for Finance if he has met with representatives from the motor insurance industry with regard to the refusal to insure motor vehicles over ten years of age; and if he will make a statement on the matter. [13640/18]

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

I am aware of the concerns raised by the Deputy and have considerable sympathy for them.

However, as I outlined in my response to question 5785/18 on this matter, 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 or terms or conditions that they should apply in respect of particular categories of drivers or vehicles.  

I understand that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply.  I understand that these include the age and type of the vehicle, as well as the age of the driver, the relevant claims record and driving experience, the number of drivers, how the car is used, etc.  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, meaning that in relation to the age of a vehicle and the availability of cover, different insurance companies will use different age thresholds.

As promised in the aforementioned PQ, my officials as part of their regular engagement with Insurance Ireland have discussed this matter in greater detail.  While there have been no further developments to date on this matter, the Deputy should note that I have asked my officials to try and gather more information on this issue and to also continue to engage with Insurance Ireland on it.