Thursday, 24 October 2013

Questions (54)

Terence Flanagan

Question:

54. Deputy Terence Flanagan asked the Minister for Finance his plans to review the cost of insurance for young females (details supplied); and if he will make a statement on the matter. [45375/13]

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Written answers (Question to Finance)

At the outset, I would point out that the calculation of annual premium rates is a commercial decision for the insurance company in question. Neither I, as Minister for Finance, nor the Central Bank of Ireland, can require a company to change its rates or prohibit a company from doing so. The primary purpose of the 2012 amendment to the Equal Status Acts is to provide in Irish law for the mandatory introduction within the EU of unisex premiums and benefits in insurance. As a result of the ruling, insurers have to change how they price risk.

While the exact movement in premiums is difficult to predict, the European Commission has indicated that it intends to monitor the evolution of the insurance market and of overall price levels post the removal of the insurance derogation in December 2012.