Dáil Éireann debate -
Wednesday, 30 May 2001

Vol. 537 No. 3

Written Answers. - Insurance Industry.

Noel Ahern

Question:

106 Mr. N. Ahern asked the Tánaiste and Minister for Enterprise, Trade and Employment the position and requirements of insurance companies in seeking price increases; if the companies individually or collectively must seek approval from her Department for price increases; if they must notify her of their intention to increase prices; if she will outline price increases given or notified by the various motor insurers in the past three years; and if she will make a statement on the matter. [16309/01]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

Decisions on the underwriting of insurance risks and setting of premiums are matters for judgment by individual private insurance companies. It should be remembered that these are issues on which insurance companies make decisions and EU law prevents us from having any direct function in relation to them.

Insurance companies are not required to seek approval from either this Department or Government for price increases. Prior approval or systematic notification of scales of premiums is prohibited by domestic insurance legislation, S.I. No. 359 of 1994, which gives effect to the Third Non-Life Insurance Framework Directive. That directive was adopted by the EU as part of the completion of the internal market.