Charlie McConalogue (Donegal, Fianna Fail)
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173. To ask the Minister for Finance his plans to tackle increasing insurance premiums (details supplied); and if he will make a statement on the matter. [4215/19]

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 has the power to direct insurance companies on the pricing or provision of insurance products. Indeed, the EU framework for insurance 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. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These are considered by insurance companies on a case-by-case basis.

Motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include those such as the age and type of vehicle, the age of the driver, the relevant driving experience, the claims record, how the vehicle is used, and the number of drivers. Insurers do not all use the same combination of rating factors, prices vary across the market and consumers are free to choose. Insurance companies also price in accordance with their own past claims experience.

Notwithstanding the above, my predecessor as Minister for Finance, Mr. Michael Noonan T.D., established the Cost of Insurance Working Group in July 2016. This Working Group, now chaired by the Minister of State for Financial Services and Insurance, Mr. Michael D’Arcy T.D., undertook an examination of the factors contributing to the increasing cost of insurance in order to identify what short, medium and long-term measures could be introduced to help reduce the cost of insurance for consumers and businesses.

The initial focus of the Working Group was the issue of rising motor insurance premiums and the Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are set out in an Action Plan.

Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group will prepare quarterly updates on its progress. The seventh such update was published last November and shows that of the 59 separate applicable deadlines within the Action Plan set to the end of Q3 2018, 45 relate to actions which have now been completed. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.

Both the Report and the quarterly updates are available on the Department’s website, within “The Cost of Insurance Working Group” sub-section of the main “Insurance” section.

It is envisaged that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, should achieve the objectives of delivering fairer premiums for consumers and a more stable and competitive insurance market. In this regard, it should be noted that the most recent CSO data (for December 2018) indicates that private motor insurance premiums have decreased by 22.16% since peaking in July 2016. While it is accepted that premiums are still at a very high level for many people, such statistics indicate at least a greater degree of stability in the market on an overall basis.

Finally, it may be of interest to your constituent that the Competition and Consumer Protection Commission website – – has an informative section regarding the purchase of car insurance, and one of the key tips listed to help cut costs is to “shop around” and “always get quotes from several insurance providers when you need to get or renew insurance”.