Brendan Griffin (Kerry, Fine Gael)
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201. To ask the Minister for Finance his advice on an insurance matter (details supplied); and if he will make a statement on the matter. [42559/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, it is important to note that neither the Minister for Finance, nor the Central Bank of Ireland, has any influence over the pricing or provision of insurance products, as this is a commercial matter assessed on a case-by-case basis.  This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).

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 relevant driving experience; as vehicle age and type; the drivers age; the relevant claims record; the number of drivers; how the vehicle is used, etc.  Insurers do not all use the same combination of rating factors, and as a result prices vary across the market. Consumers are accordingly free to choose whatever product best meets their needs, with price obviously being a relevant factor.  Insurance companies also price in accordance with their own past claims experience. This illustrates the importance of shopping around for insurance.

In relation to the experience referred to with a specific insurance provider, it is important to note that as Minister for Finance, I am not in a position to comment on or intervene in respect of individual cases.

I understand that there is no statutory basis behind the individual policies of insurance companies pertaining to the time period of non-continuous driving experience for the purposes of retaining insurance cover.  Officials in my Department have previously engaged with Insurance Ireland on this issue.  They confirmed that the general current timeframe of two years companies use in this regard is one which appears to have evolved within the insurance market itself, rather than representing a rule imposed by the industry and/or the State, and that there may be flexibility from certain individual providers if the time period concerned is marginally over two years.  Ultimately, this is a commercial matter for companies and will be reviewed on a case-by-case basis.  

Throughout the pandemic, Government has consistently called on insurers to treat customers honestly, fairly and professionally, and in line with the Central Bank’s Consumer Protection Code. With regard to insurance for Small Public Service Vehicle (SPSV) drivers, I understand from my officials that several insurers in the market introduced measures last year to ease the burden on drivers, including the ability to reduce vehicle cover to social, pleasure and domestic use only with pro-rata refunds provided. However, as the Deputy will be aware, I cannot direct insurers to offer such measures. It should be noted that the National Transport Authority (NTA) advises that where SPSV insurance is not in place, the driver does not hold a valid SPSV licence. I believe that it is important that anyone concerned should engage directly with their insurer or broker and the NTA regarding their circumstances and options.

In situations where a person is not satisfied with the service of an insurance provider, it is advisable that that person make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes, which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.

Finally, where an individual is having difficulty in receiving an insurance quotation, or a private company has issues in relation to named drivers on their fleet policy, which may be relevant in this case, they may wish to use the Declined Cases Agreement (DCA). Under the terms of the DCA, which is adhered to by all motor insurers in Ireland, the insurance market will not refuse cover if the person has approached at least three insurers and has been unable to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website, while more generally, Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu.