Dáil Éireann Debate, Wednesday - 27 January 2021
192. Deputy Holly Cairns asked the Minister for Finance if his attention has been drawn to the difficulties faced by drivers under 25 years of age who need to use vans or commercial cars for employment but cannot get or find same given the excessive difficulty to secure insurance quotations for these vehicles; and if he will make a statement on the matter. [3733/21]
View answerAt the outset, while I have an appreciation of the specific issue the Deputy raises, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter. In addition, we cannot compel any insurer operating in the Irish market to provide cover to specific individuals or groups, such as young or recently qualified drivers who may use a van or commercial car for employment. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
On a general level, my understanding is that firms will use a combination of rating factors in making their individual decisions on whether to offer motor cover and what terms to apply. For example, factors may include the driver’s age; relevant driving experience; the age and type of vehicle; how and where the vehicle is used; the claims record; the number of drivers; and the storage location. Insurers also price in accordance with their specific claims experience and do not use the same combination of rating factors. Accordingly, premium prices vary across the market, demonstrating why it is important for consumers to shop around on their insurance policies.
Where an individual is having difficulty in receiving an insurance quotation, or a private company has issues in relation to named drivers on their fleet policy, which may be relevant in this case, they may wish to use the Declined Cases Agreement (DCA). Under the terms of the DCA, which is adhered to by all motor insurers in Ireland, the insurance market will not refuse cover if the person has approached at least three insurers and has been unable to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website, while more generally, Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu.
Finally, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. It is my intention, along with Minister of State Fleming, to work to ensure that the commitments outlined in the Programme for Government are progressed in accordance with the Action Plan for Insurance Reform. In this regard, we will work with our Government colleagues to ensure that a Whole-of-Government approach continues to be the focus and that the cumulative impact of all of the actions Plan can have a positive effect on the affordability and availability of insurance for individuals, businesses and voluntary groups across Ireland.
