Terence Flanagan
Question:202. Deputy Terence Flanagan asked the Minister for Finance his views on a matter (details supplied) regarding insurance costs; and if he will make a statement on the matter. [36972/14]
View answerTuesday, 30 September 2014
Questions (202)
Written answers
In my role as Minister for Finance I have responsibility for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland, as regulator, interfere in the pricing of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are accepting and adequate provisioning to meet these risks.
The EU framework for insurance expressly prohibits Member States adopting rules which require the prior approval or systematic notification of certain matters, including general and special policy conditions and scales of premiums. Furthermore, in the context of non-life insurance, which includes public indemnity insurance, the EU framework provides non-life insurers with the freedom to set premiums. This has been acknowledged by the European Court of Justice.
The Central Bank does not regulate premiums in the insurance market. Insurance companies consider a number of risks when determining the premium for a proposed insurance policy, whether that is a general insurance policy such as motor or home insurance, or a life assurance policy. A premium is based on the actuarial calculation of risk.
Consumers are encouraged to shop around at the time of insurance renewal. The National Consumer Agency has information which may assist a consumer to shop around it can be found at http://www.consumerhelp.ie/getting-insurance-quotes#Shopping.