Vol. 508 No. 4
99 Mr. U. Burke asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to compel motor insurance companies including a company (details supplied) which is refusing to offer a quote to car owners in view of the fact this company has in the past added a surcharge on premiums to make it viable; and if she will make a statement on the matter. [19208/99]
I assume the Deputy, in his question, is referring to recent press reports alleging the refusal by a major insurer to quote for motor insurance business in certain parts of the country. We have no statutory powers to compel a particular motor insurance company to offer quotes for motor insurance nor to interfere or influence the accepted standard criteria used by insurance companies for covering motor insurance risks. Our primary role, in so far as the regulation of insurance companies is concerned, is to ensure that the companies remain solvent, thus ensuring the protection of policyholders in that regard. Allied to that function is the pursuit of policies to ensure that motor insurance cover is available at reasonable cost and that a competitive market is maintained. The challenge is always to strike a balance between prudential considerations on the one hand and a high level of consumer protection on the other.
Motor insurance underwriting criteria are normally based on underwriting experience including trends in the level, frequency and cost of claims for particular risks and classes of risk and are a matter of judgment by individual private insurance companies. Any changes in circumstances affecting the risk insured would have to be assessed by the insurer from an underwriting standpoint. The premiums charged and the availability of a quote will reflect any material increase in the risk.
In the light of normal practice in this regard, we were surprised by the recent press reports. We are also concerned at the implications for targeted motor insurance policyholders. Accordingly, I requested our officials to urgently seek clarification on the issue from the company. I also forwarded papers regarding this matter to the Motor Insurance Advisory Board for its immediate attention and appraisal. The company subsequently assured the Department that it was continuing to quote for new business throughout the country but that, from time to time, there may be specific individual cases where a quote may not be forthcoming. In cases of refusals to quote for motor insurance, the declined cases agreement between the Minister for Enterprise, Trade and Employment and the Irish Insurance Federation offers the motorist the opportunity of a motor quotation subject to certain criteria.
I have asked our officials to continue to monitor the situation in the public interest.
