Dáil Éireann Debate, Tuesday - 15 September 2020
286. Deputy Richard Bruton asked the Minister for Finance if his attention has been drawn to the fact that some insurers are unfairly seeking to take advantage of the benefit-in-kind concession granted to encourage company car fleets to go electric and that some insurers are refusing to recognise no-claim bonuses accumulated by drivers on their private policies, thereby overcharging for the risk of cover. [23894/20]
View answerAt the outset, I am conscious of various issues which have arisen in relation to the insurance industry over the past number of years. Specifically, the pricing and availability of non-life insurance has been subject to considerable volatility. Accordingly, reform of this sector has been, and remains a key priority of Government as is recognised in a considerable number of Programme for Government commitments.
However, the provision of insurance is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are willing to accept. Consequently, neither I in my role as Minister for Finance nor the Central Bank can interfere in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (Solvency II Directive).
In the first instance if a consumer has a complaint with the service of their insurance provider, it is advisable that that they pursue this through the firm's internal complaint resolution process. The Consumer Protection Code requires that if, after 40 days, the complaint has not been resolved to the customer’s satisfaction, the consumer may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO). This provides an independent arbitration of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
In order to be helpful to the Deputy, my officials contacted Insurance Ireland on this matter who responded that they do not track data on pricing of classes of vehicles (such as electric vehicles) as pricing is a matter for each individual company to assess relative to their particular commercial strategy, risk appetite and claims experience. They indicated many of the major underwriters have specific products designed for electric vehicles, with bespoke features such as battery breakdown assistance. Insurance Ireland also noted that there are a number of specialist intermediaries entering into the electric vehicle market. They indicated that the specific issue outlined in the question is not one which has been raised by consumers to them through their Insurance Information Service. This Service is for those who have queries, complaints or difficulties in relation to obtaining insurance, and can be accessed at: feedback@insuranceireland.eu.
Finally, I believe the issue raised in the question demonstrates why it is important for consumers, including businesses, to shop around on their insurance policies. The Competition and Consumer Protection Commission (CCPC), on its website, recommends that consumers get quotes from a number of insurance companies, including their current one. I believe that this advice applies to businesses as well as individuals. The CCPC website also includes a motor insurance shopping around checklist and other tips on cutting motor insurance costs which may prove useful to consumers and businesses.
