Dáil Éireann Debate, Wednesday - 26 July 2017
147. Deputy Catherine Connolly asked the Minister for Finance if his attention has been drawn to the practice by motor insurance companies here of refusing to supply a motor insurance quotation to returning persons on whose licences there are no endorsements; and if he will make a statement on the matter. [36243/17]
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. Consequently, I am not in a position to direct insurance companies in relation to the pricing or provision of insurance to particular categories of individuals, such as returning emigrants.
Notwithstanding the above, I am aware of the particular issues facing returning emigrants in respect of motor insurance and in this regard the Deputy should note that such issues were considered by the Cost of Insurance Working Group which published its Report on the Cost of Motor Insurance in January 2017.
Recommendation 6 of the Report, in particular, aims to address the problems faced by returning emigrants to ensure a greater consistency of treatment for this category of drivers. Pursuant to this recommendation, a protocol has been agreed between my Department and Insurance Ireland under which insurance companies have committed to accepting the driving experience returning emigrants gained while abroad, when the driver has previous driving experience in Ireland. The guiding principle of the protocol to ensure that a returning emigrant is not treated any differently to any other driver subject to their ability to demonstrate, and the insurance company to verify, their continued driving experience and the normal acceptance criteria of the company. This is of particular relevance to the issue of the recognition of claims-free driving experience in another jurisdiction.
In addition, insurance companies have agreed to provide relevant and helpful information on their websites to make it easier for consumers to understand the implications of their move abroad from a motor insurance perspective. As part of this exercise they will outline what people need to do under a number of different circumstances, depending on the length of time they intend being away from Ireland.
The one outstanding future action related to Recommendation 6 is the submission of a report by Insurance Ireland to my Department before the end of Q4 2017 which will provide an update as to how the recommendation has been rolled-out amongst Insurance Ireland members in practice. This will greatly assist my Department in monitoring the implementation of the relevant actions.
Finally, if a consumer is unable to secure a quotation on the open market, he or she may be in a position to avail of the Declined Cases Agreement (DCA) process. Under the terms of the DCA, the insurance market will not refuse to provide insurance to an individual seeking insurance if the person has approached at least three insurers and has not been able to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website while Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu or 01-6761914.
