Dáil Éireann Debate, Thursday - 23 July 2020
102. Deputy Niamh Smyth asked the Minister for Finance if the case of a person (details supplied) will be reviewed; if he will liaise with insurance providers to refund and or rebate to all customers; and if he will make a statement on the matter. [17718/20]
View answerIt should be noted at the outset that in my role as Minister for Finance, I have no influence over whether an insurer should provide a partial refund of motor premiums to its customers, as this is very much a commercial decision for each company to make. However, I strongly believe that all sectors must play their role in assisting customers in these difficult times. In view of this, my officials and I have engaged with the insurance industry through Insurance Ireland with regards to motor insurance reliefs during the COVID-19 restrictions.
At a meeting on 17 April with Insurance Ireland, I called on insurers to be pro-active and generous in relation to their treatment of motor insurance customers during this period. In this regard, I pointed out that a combination of the very profitable part of this market over the last 12 months and what is likely to be a significant reduction in claims for this period due to the travel restrictions that are in place, provided a strong case for premium refunds, thus providing some financial relief to their customers in this extraordinary time. On 24 April, Insurance Ireland announced that a number of their members (Allianz, AXA, FBD, RSA and Zurich) had signed up to commitments on premium reliefs for motor customers. In addition, Liberty Insurance wrote to me directly informing me of discounts that they would apply to their customers.
It would appear that insurers have applied a flat rate across all policyholders rather than looking at the situation in a more granular fashion. I do understand that a case can be made that those who have been cocooning deserved a larger refund, due to their cars being off the road altogether. However, the methodology of the premium relief process is a matter outside of my control and it is important to note that each insurer has a different mix of customers and different claims experience and that the financial supports, such as refunds or discounts, applied by each insurance company will reflect their own individual claims experience to date. While, it should also be noted that these are voluntary commitments and neither I, nor the Central Bank, have any role in adjudicating these matters, I continue to expect that all insurers will be pro-active and think of the longer term interests of their market and customers.
In conclusion, on renewal policyholders have the option to shop around for better prices and service from their insurer and I strongly encourage all consumers to shop around. In this regard, I believe that consumers will remember and favour those companies that have made steps towards meeting their needs at this difficult time.
