Dáil Éireann Debate, Thursday - 26 November 2020
224. Deputy Bernard J. Durkan asked the Minister for Finance if his Department continues to monitor developments in the insurance industry, with particular reference to the need to provide cover for all types of insurance at viable rates; and if he will make a statement on the matter. [39474/20]
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, nor can we compel any insurer operating in the Irish market to provide cover. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
The Programme for Government sets out a range of commitments to reform the insurance sector. Work has begun to implement these. In this regard, a Cabinet Committee Sub-Group has been established by Government to oversee insurance reform implementation. This is chaired by the Tánaiste, and also includes as standing members, Ministers McGrath, McEntee, O’Gorman and myself, together with Ministers of State Troy and Fleming. I strongly believe this cross-departmental approach provides the best opportunity to address the cost and availability of insurance and will build and expand upon previous commendable work done by the Cost of Insurance Working Group (CIWG), which published its Eleventh and Final Progress Update report on 30 October.
By way of update, a new insurance reform Action Plan is being developed which will outline a range of deliverables, including potential legislation, where required, in a number of Government Department policy areas, and will be published before the end of the year. Work is already underway in relation to a number of areas and it is anticipated that the Cabinet Committee Sub-Group should be able to report on progress in relation to the proposed Action Plan for insurance reform before the end of this year.
In addition to this work, there has been a fresh round of intensive engagement with key stakeholders. In this regard, Minister of State Fleming has held meetings with the Alliance for Insurance Reform; the State Claims Agency; Insurance Ireland; Irish Public Bodies Mutual Insurance; the Central Bank of Ireland; and Brokers Ireland. More recently, he has just concluded a series of meetings with the main insurers in the Irish market, the Law Society of Ireland, the Bar Council of Ireland, Home and Community Care Ireland, and the Motor Insurers’ Bureau of Ireland.
In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority issue for this Government. Minister of State Fleming and my Department will continue to play a lead role in this policy area.
