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Insurance Costs

Dáil Éireann Debate, Wednesday - 31 March 2021

Wednesday, 31 March 2021

Questions (106, 371)

Michael Moynihan

Question:

106. Deputy Michael Moynihan asked the Minister for Finance the action being taken on differential pricing in the motor and home insurance markets. [17141/21]

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Pearse Doherty

Question:

371. Deputy Pearse Doherty asked the Minister for Finance his views on the Central Bank’s Interim Report in its Review of Differential Pricing Practices in the Irish Private Car and Home Insurance Markets; if he will support legislation to prohibit its practice; and if he will make a statement on the matter. [1851/21]

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Written answers

I propose to take Questions Nos. 106 and 371 together.

The Deputies will be aware that the Programme for Government includes a commitment to work to remove dual pricing, a form of differential pricing, from the market. In this regard, the Action Plan for Insurance Reform also commits to examine the forthcoming Central Bank Review of Differential Pricing in the Motor and Home Insurance Markets and take any appropriate actions as deemed necessary, in light of the final report.

The Central Bank’s Interim Report marks an important milestone in its review of the issue and summarises the initial observations from its ongoing market analysis and consumer research. This will inform the next phases of its work and I look forward to it being finalised in the coming months. I note that the Central Bank has stated that differential pricing can be associated with both benefits and costs for consumers. Accordingly, completion of the analysis will be essential in order to ensure a full market perspective, evidence-based conclusions and in turn appropriately calibrated regulatory interventions. In addition, the associated consumer research, which is ongoing, will also provide insights which will be essential to the Central Banks’s overall analysis.

Both Minister of State Fleming and I have repeatedly called on the insurance industry to treat their customers fairly and in line with the Central Bank’s Consumer Protection Code. I believe that the insurance industry should now be proactively addressing these concerns. In this regard, Minister of State Fleming has previously sought the views of the main insurers on differential pricing, and will continue to raise this matter with the industry, including at upcoming meetings in the coming weeks.

In conclusion, I would note that the new Office to Promote Competition in the Insurance Sector will work to enhance consumer awareness and develop information campaigns, in collaboration with relevant stakeholders, about the benefits of switching from and engaging with providers.

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