Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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109. To ask the Minister for Finance the reason a person (details supplied) cannot get insurance due to their age; and if he will make a statement on the matter. [50003/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I note that the details supplied by the Deputy refers to a situation involving motor trade insurance, which I understand is not a standard private motor insurance policy. Neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct insurance companies as to how they price their policies or what terms and conditions they apply to those policies.

Insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply, including for motor trade insurance policies. Factors may include those such as the driver’s age and experience, the relevant claims record, and so on. 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 will also price and offer cover in accordance with their own past claims experience.

Notwithstanding the above, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. It is my intention, along with Minister of State Fleming, to work to ensure that the commitments outlined in the Programme for Government are progressed in accordance with the Action Plan for Insurance Reform. As the Deputy may be aware, the Cabinet Committee Insurance Reform Sub-Group in July published the first six-monthly Implementation Report of the Action Plan. This shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed. The Sub-Group’s focus now is on implementing the outstanding actions on time.

In relation to motor insurance prices more generally, I would note that, according to Central Statistics Office (CSO) data for July 2021, motor insurance prices are continuing to decline. Motor insurance prices in June were 34.7% lower than their peak in July 2016; and 5.7% lower than when the Government’s Cabinet Committee Sub-Group on Insurance Reform was established in September 2020. It is the Government’s intention that this positive downward trend continues as the reform agenda progresses.

With respect to the correspondence highlighted in the question, it may interest the individual involved to know that Insurance Ireland, the representative body for insurance providers in this country, operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover. This can be accessed at feedback@insuranceireland.eu. In addition, Brokers Ireland can be contacted at .

I would also note that a person who is unable to secure a motor insurance quotation on the open market, may be in a position to avail of the Declined Cases Agreement process. Under the terms of the Declined Cases Agreement (DCA), which is adhered to by all motor insurers in Ireland, the insurance market will not refuse to provide insurance to an individual seeking motor insurance if he or she has approached at least three insurers and has not been able to obtain cover from them. The relevant e-mail address for the DCA is: declined@insuranceireland.eu.

I would like to assure the Deputy that work remains ongoing across Government to deliver further elements of the Action Plan, including measures to reform the Personal Injuries Assessment Board, reduce fraud, and make changes to the duty of care in order to strengthen waivers and notices. It is my hope that the implementation of these key actions in particular should further help to improve the affordability and availability of insurance for all consumers, businesses and voluntary groups – including young drivers in particular.