Dáil Éireann Debate, Thursday - 26 November 2020
125. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the fact that some motor insurance companies are only providing a Covid-19 rebate to their customers upon renewal of policy; his views on whether this is unfair to customers who may wish to change their provider rather than renew their cover with their existing provider; and if he will make a statement on the matter. [39157/20]
View answerAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
However, I believe that insurers have a fundamental role to play in ensuring that their customers are fairly treated during these very difficult times. In view of this, 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 . On 24 April, Insurance Ireland announced that a number of its members: Allianz; AXA; FBD; RSA and Zurich had signed up to commitments on premium reliefs for motor customers. In addition, Liberty Insurance wrote informing me directly of discounts that it would apply to its customers.
It is my understanding that the companies that signed up to these commitments have offered premium reliefs on a flat rate basis to their customers either by way of refunds or vouchers. While it should also be noted that these are voluntary measures 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 the market and their customers. This also applies to those insurers that did not sign up to these commitments, and whom I understand, from recent meetings that Minister of State Fleming has held with the main motor insurance providers, may be reflecting any savings made this year through reductions at policy renewal. Ultimately, I believe customers will remember and favour those companies that have made steps towards meeting their needs in these difficult times.
