Dáil Éireann Debate, Tuesday - 31 January 2017
139. Deputy Pearse Doherty asked the Minister for Finance the policy and legislative steps he is taking to ensure the cost of insurance is not prohibitively expensive for businesses; and if he will make a statement on the matter. [4514/17]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
However, I do recognise that the State can play a role in creating a more stable environment within which insurance companies can operate. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. The Cost of Insurance Working Group focussed on motor insurance in the first phase of its work, due to the fact that this had the widest impact on society and also because motor insurance premium increases had been the largest. The Report on the Cost of Motor Insurance was finalised in December 2016, approved by Cabinet on 10 January 2017, and subsequently published. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation.
The next phase of the Working Group's work will commence shortly and will focus on the cost of insurance for businesses. Minister of State Murphy will make an announcement providing more detail on this in due course.
Finally, it should be noted that many of the recommendations and action points contained in the Report on Motor Insurance will have a positive impact on the wider insurance sector, including the business insurance sector, through the creation of an enhanced claims environment, availability of data, and increased competitiveness.
