Noel Grealish (Galway West, Independent)
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274. To ask the Minister for Finance the estimated timeline for drafting the insurance (miscellaneous provisions) Bill now that it has been approved by Government; if the title of the Bill will remain the same; the issues to be covered in the proposed legislation; and if he will make a statement on the matter. [52781/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government recently approved the General Scheme of the Insurance (Miscellaneous Provisions) Bill for priority drafting. Subsequently Minister of State, Deputy Fleming wrote to the Chair of the Committee on Finance, Public Expenditure and Reform and the Taoiseach, in relation to pre-legislative scrutiny. Once these elements have been completed, the Bill will be published and will then be considered by the Oireachtas. While no changes to the title or provisions of the Bill are currently planned, the Deputy will appreciate, the General Scheme may be subject to technical changes arising from further advice of the Attorney General.

The Bill addresses a number of insurance-related matters that have arisen since the Action Plan for Insurance Reform was published last December. Chief among these is the practice seen during the pandemic whereby some insurers deducted Government payments from COVID-19-related claims settlements. The Bill aims to ensure that Government is well-equipped to address this practice in future by enabling the Central Bank to collect data on such deductions through the National Claims Information Database. The Bill will also ensure that in future policyholders are fully aware of such practices, by requiring insurers to inform consumers of any State supports deducted from claims payments. These measures will enhance transparency around this issue, helping both Government and policyholders to make informed decisions.

Secondly, the Bill aims to support the work of the Central Bank to address price walking, a de facto “loyalty penalty”, following its Review of Differential Pricing in the Private Car and Home Insurance Markets . To this end, it will require the Central Bank to report to the Minister for Finance about any steps taken to address price walking. This will ensure timely oversight of any action taken in this area, such as the bank’s proposal to ban price walking, making Ireland one of the first countries in the world to ban this practice.

Thirdly, the Bill provides for technical amendments to the Consumer Insurance Contracts Act 2019 to clarify certain issues that arose following the initial enactment of this legislation. Finally, it amends the legislation underpinning the Temporary Run-off Regime for UK and Gibraltar-based insurers, established following the UK’s withdrawal from the EU. This will rectify technical issues with the scheme that have been identified by the Central Bank. These amendments will ensure that existing legislation can operate effectively and without unintended consequences.

In conclusion, while the length of the parliamentary process is subject to several factors, it is my hope that the Bill can be considered in a timely manner in the interests of consumers. I believe this Bill is an important piece of legislation which will further advance the Government’s insurance reform agenda. I look forward to working with colleagues and stakeholders to progress it over the coming months.