Eamon Scanlon (Sligo-Leitrim, Fianna Fail)
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41. To ask the Minister for Finance if he is aware that insurance providers are applying an additional premium to vehicle insurance based on an individual’s Eircode; and if he will make a statement on the matter. [14243/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, it is important to clarify that neither I nor the Central Bank of Ireland can interfere with the provision or pricing of insurance products, as these are commercial decisions made by individual companies, governed by the EU Single Market framework for insurance (the Solvency II Directive).

In relation to motor insurance, Insurance Ireland have advised the Department of Finance that 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 has implemented a series of insurance sector reforms, which have been successful in attracting new entrants to the Irish market. For example, OUTsurance, a major home and motor insurer, launched last year which is a positive development for consumer choice and competition. The insurance sector has also seen greater activity from Managing General Agents, introducing specialised expertise into the market. This, combined with growing competition in the brokerage sector, has improved access to niche insurance products and reduced premiums. International capacity providers have also expressed a more favourable perception of the Irish insurance market.

I wish to assure the Deputy that the Government remains committed to continued reform of the insurance sector. The Government has committed to publish a new Action Plan for Insurance Reform, focused on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance, building on the significant progress made under the previous action plan. The new Action Plan for Insurance Reform, once developed, will be aimed at supporting a more sustainable and competitive market through deepening and widening the supply of insurance and delivering tangible benefits to consumers across Ireland.