Neale Richmond (Dublin Rathdown, Fine Gael)
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194. To ask the Minister for Finance his plans to call on insurers to reimburse drivers due to the underuse of vehicles as he did during April 2020; and if he will make a statement on the matter. [5496/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, working to protect insurance policyholders during and after the COVID-19 crisis is a priority for Government. As such, it is included within the Programme for Government and the Action Plan for Insurance Reform, launched last December. Since the onset of the COVID-19 pandemic, I have consistently called on insurers to treat their customers honestly, fairly and professionally.

I can assure the Deputy that both Minister of State Fleming and I have had extensive engagement with motor insurers and other key policy stakeholders throughout 2020 and these discussions are planned to continue this year. As the Deputy indicates I have called upon insurers to be pro-active and generous in relation to their treatment of motor insurance customers during the COVID-19 crisis. In particular, I would highlight an expected significant reduction in claims arising from the travel restrictions that have been in place. Last year saw a number of insurers announcing a range of forbearance measures and motor insurance rebates for policyholders. Insurers have agreed to further review the situation if Covid-19 restrictions on movement continue to result in sustained lower road usage and claims frequency this year.

More recently, as part of comprehensive engagement on the Government’s insurance reform agenda with a wide range of stakeholder interests, including the main Irish insurers and their representatives, Minister of State Fleming again raised the need for industry to respond to both the Government’s ongoing reforms and COVID-19 pandemic. This expectation will be met through lowering premiums, continuing to offer forbearance measures, and by expanding their risk horizon in the market (such as providing more cover for younger drivers.

While Insurance Ireland last week (27 January) announced a continuance of forbearance measures on behalf of a number of its members, including a number of measures directly targeting motor insurance policyholders, both Minister of State Fleming and I will continue to raise this issue through our ongoing engagement with insurers, particularly in light of the stricter restrictions on movement currently in place as a result of Government measures to combat the pandemic.