asked the Minister for Industry and Commerce if, in view of the recent announcement by insurance companies of increases in premium rates up to 25 per cent in certain categories of fire and accident insurance, he proposes to institute an enquiry into these increases to satisfy himself that they are justified; and if he will indicate (1) what is the total premium income from (a) fire insurance and (b) accident property insurance for each of the past five years in the Republic of Ireland, and (2) the total insured losses under the same headings for the same period.
Ceisteanna—Questions. Oral Answers. - Increased Fire and Accident Insurance Premiums.
41.
I have no power to control these rates. The insurance rate for a particular class of risk is determined by underwriting experience. The returns submitted to me show that substantial underwriting losses have been incurred on fire insurance in this country in recent years.
Detailed information on the matters mentioned in the second part of the question is obtainable from the annual reports on Assurance Companies published by my Department and presented to the Dáil. The latest such report— that relating to the accounts deposited during 1962—will be published next week.
Does the Minister consider that a figure of 25 per cent is a reasonable increase under the circumstances?
As the Deputy is aware, the increases refer only to certain types of fire insurance, mainly factories and buildings of that nature. There have been some tremendous losses arising out of damage to factories by fire and storm in recent years. As the Deputy is probably further aware, all the insurance companies contribute to a fund. I am not in a position yet to be sure what effect the 25 per cent increase will have on the returns of the insurance companies in the years to come. These matters will be disclosed in the annual returns. However, if there is any suitable action that suggests itself to me, it can be taken then.
Does that mean that, if the Minister sees suitable action is necessary, he is prepared to come to this House for the necessary powers?
I cannot indicate at this stage what I would regard as suitable action.
The Minister stated at the very beginning of his reply to this question "I have no power ..." If necessary, will the Minister come to this House for the necessary powers to deal with the matter?
I will not give any undertaking about that. I have certain powers under the Insurance Acts, and the suitable action I would propose to take would relate to the whole range of insurance matters.
Does the Minister consider it fair that when insurance companies make a loss on certain aspects of their business they increase their rates, but when they make a considerable profit on other aspects of it they do not reduce their rates?
Surely that is a separate matter? Question No. 42.