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Insurance Industry

Dáil Éireann Debate, Thursday - 25 March 2021

Thursday, 25 March 2021

Questions (39)

Paul Donnelly

Question:

39. Deputy Paul Donnelly asked the Minister for Finance if insurance companies that cover dance schools, variety clubs and stage schools will be lobbied for a reduction in premiums while teaching online. [15981/21]

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Written answers

I am aware that concerns have been expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, particularly those like, variety clubs, dance and stage schools who are unable to use their premises and have to teach online.  However, it is important to alert the Deputy to the fact that neither I, nor the Central Bank, have any influence over the pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide refunds to their customers, as this is a commercial matter. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from adopting rules, which require insurance companies to obtain prior approval of the pricing or terms and conditions of their products.

Nevertheless, working to protect insurance policyholders during and after the COVID-19 crisis is a priority issue for Government. As such, it is included within the Programme for Government and the Action Plan for Insurance Reform, launched in December. Since the onset of the COVID-19 pandemic, I have consistently called on insurers to treat their customers honestly, fairly and professionally, and in line with the Central Bank’s Consumer Protection Code.

As the Deputy will recall, both I and Minister of State Fleming have had extensive engagement with the insurance industry regarding insurers offering supports and reliefs to businesses.  We highlighted the need for the sector to respond to both the Government’s ongoing reforms and COVID-19 pandemic by lowering premiums, to continue to offer forbearance measures, and to expand their risk horizon in the market. Last year, most of the main insurers agreed to offer a range of common forbearance measures, including a reduction in premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer /Public Liability and Commercial Motor.  Insurers also announced that they would maintain cover for unoccupied commercial buildings/premises not in use due to these restrictions, for a maximum of 90 days (appropriate supervision and security of the premises is required).

I note Insurance Ireland announced a continuance of forbearance measures on behalf of a number of its members in late January.  In the coming weeks Minister of State Fleming will again meet with the main insurers to discuss their response to the recently published Personal Injuries Guidelines.  The insurance industry’s ongoing response to the COVID-19 pandemic will also be included on the agenda for these meetings. Both Minister of State Fleming and I will continue to monitor developments in this area and to engage with insurers and other relevant stakeholders.

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