Marc Ó Cathasaigh (Waterford, Green Party)
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32. To ask the Minister for Finance if he is aware of the practice of insurance companies to increase car insurance premium renewals based on specific addresses of the policy owners, while not taking into account security measures such as CCTV, driveways, and so on; and if he will make a statement on the matter. [27355/24]

Jack Chambers (Dublin West, Fianna Fail)
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Firstly, it's important to clarify that neither I nor the Central Bank of Ireland have the authority to dictate insurance pricing or product offerings, as these are commercial decisions made by individual companies, governed by the EU Single Market framework for insurance (the Solvency II Directive).

In terms of motor insurance, firms use various rating factors when deciding whether to provide coverage and on what terms. These factors can include the driver’s age, driving experience, vehicle age and type, usage, claims history, number of drivers, where the vehicle is kept at night, and the address of the policyholder. Insurers continuously review and analyse relevant data so that even if the insured has not changed address, insurers view of this risk factor may have altered since the last renewal. Insurers base their prices on their own claims experiences, which means companies may weigh these factors differently. Additionally, increasing costs for repairs and labour due to inflation are contributing to premium increases. Consequently, prices vary across the market.

The Government is committed to enhancing market competition, but ultimate decisions on pricing and underwriting are made by individual insurers based on risk assessments and statistical data. Nonetheless, the Government has prioritized insurance sector reform through the Action Plan for Insurance Reform, targeting 66 measures aimed at reducing costs for consumers and businesses, increasing market competition, preventing fraud, and easing the financial burden on individuals, businesses, and community/voluntary organizations.

According to the latest Implementation Report, the vast majority of the Action Plan is complete, with significant reforms in areas such as personal injury awards, the claims process (Injuries Resolution Board), and the Duty of Care (Occupiers’ Liability Act 1995). Minister of State Richmond is actively engaging with CEOs of major insurance companies to emphasise the importance of passing on savings from the reformed insurance environment to customers through lower premiums.

Additionally, these measures have been successful in attracting new entrants to the Irish insurance market. OUTsurance, a new major home and motor insurer has recently launched, which is a positive development for consumer choice and competition. This is a sign that the Government’s reform agenda is having a positive impact and I wish to assure the Deputy that I will continue to work with colleagues to ensure that this remains the case.