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Insurance Industry Regulation

Dáil Éireann Debate, Wednesday - 23 September 2015

Wednesday, 23 September 2015

Questions (65)

Eamonn Maloney

Question:

65. Deputy Eamonn Maloney asked the Minister for Finance to indicate the person or body who regulates car insurance charges; the process for granting an increase; his views on whether it is reasonable that a motor insurance company which offers customers a deferred method of payment option over a ten month period, for which it charges administration and interest charges, can also deem it to be a rating factor, like engine size or driving experience; and if he will make a statement on the matter. [32440/15]

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Written answers

In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. The Central Bank of Ireland regulates non-life insurers; however, it does not approve car insurance premiums.

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 willing to accept and adequate provisioning to meet these risks. As a matter of course, insurance companies carry out reviews of the risks against which they are prepared to provide insurance and they consider these risks when determining their policies, including insurance premiums.

The EU framework for insurance expressly prohibits Member States adopting rules which require insurance companies to obtain prior approval or provide systematic notification of certain matters, including general and special policy conditions and scales of premiums.

My officials have consulted with Insurance Ireland regarding the particular issue which the Deputy has raised. Insurance Ireland advised that motor insurers make their own individual decisions on whether to offer cover or what terms to apply. They use a combination of rating factors in doing this such as the age of the driver, the type of car, claims record, driving experience, number of drivers, how the car is used, etc.  Insurers do not all use the same combination of rating factors and prices vary across the market.

Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. They may be contacted at Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820.

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