Written answers

Friday, 7 September 2018

Department of Finance

Motor Insurance Costs

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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114. To ask the Minister for Finance if his attention has been drawn to the difficulties faced by and extortionate prices being quoted to young drivers seeking to access insurance to operate as a HGV driver; if he will request the data behind these quotes from an organisation (details supplied); and if he will make a statement on the matter. [35842/18]

Photo of Paschal DonohoePaschal 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 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.

In relation to young HGV drivers in particular, my officials queried this point specifically with Insurance Ireland who noted that insurers make their own individual underwriting decisions based on a combination of rating factors.  Insurance Ireland also advised that its Insurance Information Service, which administers the Declined Cases Agreement, has processed one case so far in 2018 involving a HGV and the driver in that case was over 35.  On a more general level however, I have received a number of representations from members of the public to highlight the cost of insurance for younger motorists and I am aware of the issue of younger drivers continuing to experience increases in their insurance premiums in spite of the fact that prices are generally in decline. 

As the Deputy knows, the Cost of Insurance Working Group was established in 2016 in order to examine the factors contributing to the increasing cost of insurance and identify what short, medium and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses.  The initial focus of the Working Group was the problem of rising motor insurance premiums and a broad range of issues affecting the cost of motor insurance were examined, including those raised by the Irish Road Haulage Association and the Freight Transport Association Ireland, both of whom were consulted with as part of the Working Group’s consultation process.  The Report, published in January 2017, made 33 recommendations and these are in the process of being implemented by Government Departments, agencies and the insurance industry.  I believe that the implementation of all of the recommendations of the Cost of Insurance Working Group’s Report on the Cost of Motor Insurance, and its subsequent Report on the Cost of Employer and Public Liability Insurance, taken together will make a difference to the pricing of insurance premiums for all drivers including young drivers and professional drivers.  Finally, it should be noted that the most recent CSO data (for July) indicates that motor insurance premiums have reduced by over 20% since their peak two years ago. 

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