Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

100. To ask the Minister for Finance the amount paid by policy holders by way of insurance premiums in each of the years since 2010 in respect of class 1 business motor insurance in tabular form; and if he will make a statement on the matter. [11637/19]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

101. To ask the Minister for Finance the amount paid by policy holders by way of insurance premiums in each of the years since 2010 in respect of class 2 business motor insurance in tabular form; and if he will make a statement on the matter. [11638/19]

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

I propose to take Questions Nos. 100 and 101 together.

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. My Department does not collect the type of information being sought by the Deputy. As the day to day supervision of insurance undertakings is a matter for the Central Bank of Ireland, my officials consulted with the Central Bank in respect of the information sought and it has confirmed that it does not collect this information either.

I would note that initially at least this type of information will not be collected by the National Claims Information Database as its focus in the first instance will be on private motor insurance claims. However, I recognise that there is a view from some stakeholders that it would be desirable to expand its scope to other lines of business, such as commercial motor insurance. For this reason, the Central Bank (National Claims Information Database) Act 2018 facilitates the expansion at a later stage should it be considered feasible.

I understand that Insurance Ireland publishes some information in relation to the gross written premium for commercial motor insurance, however this is not split into class 1 and class 2 In that regard, I understand, from the 2016 Insurance Factfile that €444.6 million was the gross written premium for commercial motor insurance. This represents approximately 26% of the overall gross written premium for motor insurance. The corresponding gross written premium figures for private motor insurance were €1.2 billion, which represents 74% of the overall gross written premium. The Deputy will be able to find similar information for years prior to this in previous year’s Insurance Factfiles on Insurance Ireland’s website.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

102. To ask the Minister for Finance the amount paid by policy holders by way of insurance premiums in each of the years since 2010 in respect of motor insurance for returning emigrants in tabular form; and if he will make a statement on the matter. [11639/19]

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. My Department does not collect the type of information being sought by the Deputy. As the day to day supervision of insurance undertakings is a matter for the Central Bank of Ireland, my officials consulted with he Bank in respect of the information sought and it has confirmed that it does not collect this information either.

With regard to the cost of insurance for returning emigrants, it is important to note that 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.

Notwithstanding this, the difficulties faced by returning emigrants in respect of motor insurance was recognised by the Cost of Insurance Working Group’s Motor report. In this regard, the Deputy may be aware that in fulfilment of one of the Working Group’s recommendations, a protocol was agreed between Insurance Ireland and the Department of Finance under which insurance companies committed to accepting the driving experience returning emigrants gained while abroad, when the driver has had previous driving experience in Ireland.

The guiding principle of the protocol is to ensure that a returning emigrant is not treated differently to any other driver, subject to verification of their continued driving experience and the normal acceptance criteria of the company. Thus, a returning emigrant will not be disadvantaged from spending that time abroad. Furthermore, under the protocol, insurance companies will not distinguish between countries on the basis of which side of the road driving takes place therein.

The Minister for the Diaspora and International Development, Mr Ciarán Cannon TD, has undertaken some further work in this area, through the Interdepartmental Committee on the Irish Abroad. This has included highlighting each individual motor insurance operator’s overall policy in respect of returning emigrants. The insurers which responded positively in relation to providing cover for this category are listed on the Department of Foreign Affairs and Trade website. These insurers have also indicated that they do, in one way or another, take into account claims-free driving experience earned abroad.

It is important to highlight that if a returning emigrant believes that they have received a high quote due to an insurance provider not accepting driving experience gained while abroad, they should contact the free Insurance Information Service operated by Insurance Ireland, which can be accessed at feedback@insuranceireland.eu or 01-6761820.

Finally, I remain of the view that the continued implementation of all the recommendations from the Report on the Cost of Motor Insurance – in addition to those in the CIWG’s Report on the Cost of Employer and Public Liability Insurance and the two reports of the Personal Injuries Commission – 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 CSO CPI statistics indicate that pricing in the private motor insurance market has stabilised over the last year or two and I welcome the direction of travel which this index has displayed since it peaked in July 2016.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

103. To ask the Minister for Finance the amount paid by policy holders by way of insurance premiums in each of the years since 2010 in respect of motor insurance for cars that are ten years or older in tabular form; and if he will make a statement on the matter. [11640/19]

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. My Department does not collect the type of information being sought by the Deputy. As the day to day supervision of insurance undertakings is a matter for the Central Bank of Ireland, my officials have consulted with the Central Bank in respect of the information sought and it has confirmed that it does not collect this information either.

With regard to the cost of insurance for cars over 10 years old, it is important to note that 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 vehicles.

Notwithstanding this, my officials engaged with Insurance Ireland in order to get a greater sense of this specific issue and, as a follow-up exercise, Minister of State D'Arcy held a series of meetings with the Chief Executives of the major motor insurers. At those meetings, insurers pointed out that in making their individual decisions on whether to offer cover and what terms to apply, they will, aside from the age of the vehicle, use a combination of other rating factors, which include the age of the driver, the type of vehicle, the relevant individual claims record and driving experience, the number of drivers, and how the car is used. In addition to the above factors, they indicated that they will price in accordance with their own overall past claims experience and in this regard, almost all insurers stated that their data indicates a notable deterioration in the levels of claims associated with vehicles once a certain age threshold is reached.

However, I also understand from the above engagement that it would appear there has been positive movement in respect of the acceptance criteria and the vehicle age threshold levels used by some providers in recent times, particularly at broker level and in respect of renewals. This is an issue which my officials will continue to monitor.

It is important to highlight that if a person is having difficulty securing a quotation or believes that they have received a high quotation as a result of having a car older than 10 years old, they should contact the free Insurance Information Service operated by Insurance Ireland, which can be accessed at feedback@insuranceireland.eu or 01-6761820.

Finally, I am hopeful that the continued implementation of all the recommendations from the Report on the Cost of Motor Insurance – in addition to those in the CIWG’s Report on the Cost of Employer and Public Liability Insurance and the two reports of the Personal Injuries Commission – should achieve the objectives of delivering fairer premiums for consumers and a more stable and competitive insurance market.