Dáil Éireann Debate, Thursday - 17 May 2018
68. Deputy Michael McGrath asked the Minister for Finance if recommendation 8 of the report on the cost of motor insurance has been completed; his views on the assessment of an organisation (details supplied) that the recommendation is covered by the Central Bank's consumer protection code; and if he will make a statement on the matter. [21879/18]
View answerThe Fifth Progress Update, which provides details on the implementation of the Report on the Cost of Motor Insurance recommendations, was published on the Department of Finance website on 11 May 2018. This Fifth Progress Update confirms that Action Point 17 (associated with Recommendation 8), which calls upon Insurance Ireland to put in place a general protocol around the requirement for insurance companies to notify a policyholder of claims made against them before settlement, has not yet been completed.
The background to this position is that Insurance Ireland have argued that this recommendation is achieved through the application of the Consumer Protection Code (CPC) and that a previously agreed protocol between the Irish Insurance Federation (IIF – the predecessor to Insurance Ireland) and IBEC titled Communication Guidelines for Insurers & Policyholders - April 2003 - has been superceded.
It should be noted that much of which was in this aforementioned protocol covers what is required to implement fully recommendation 8 and in particular addresses what is a key missing feature in the CPC i.e. the absence of any requirement for policyholders to receive appropriate communication and engagement with their insurer in relation to claims made against their policies.
As a result, the Minister of State for Financial Services and Insurance, Michael D’Arcy TD, wrote to Insurance Ireland on this matter on 8 December 2017 to ask the insurance industry to fully implement this recommendation as soon as possible. A response to this letter was received on 3 April 2018 which reiterates Insurance Ireland’s position that the CPC is sufficient in their view.
In conclusion, it should be noted that my Department is continuing to pursue the implementation of Recommendation 8, in parallel with a related recommendation from the EL/PL Report. Options are being considered as to the best course of action for bringing the recommendations forward, given industry’s diverging opinion on the matter.
