As the Deputy will be aware, in line with the EU Solvency II Directive insurance framework, I cannot compel any insurer operating in the Irish market to provide refunds to their customers, as this is a commercial matter. Nevertheless, working to protect insurance policyholders during and after the COVID-19 crisis, with particular emphasis on motor insurance rebates, remains a priority issue for Government. As such, this is included within the Action Plan for Insurance Reform.
In this regard, Minister of State Fleming and I have had extensive engagement with motor insurers and other key policy stakeholders throughout the pandemic. We have consistently called on insurers to: treat their customers honestly, fairly and professionally, and in line with the Central Bank’s Consumer Protection Code; emphasised the need for industry to respond to both the Government’s ongoing reforms and the pandemic by lowering premiums; continuing to offer forbearance measures; and expanding its risk horizon in the market (such as providing more cover for younger drivers).
Minister of State Fleming met with the CEOs of the main insurance firms in the last number of weeks. He outlined that Government is continuing to implement measures from the Action Plan for Insurance Reform, and that the new Personal Injuries Guidelines were coming into force ahead of schedule, on 24 April. This key development will be of major benefit to insurers as it will help reduce the cost of claims, as well as allow the expansion of their business on the basis of greater confidence around more sustainable and consistent award levels. He also outlined that on renewal Government expects premiums should reduce for all classes of insurance and insurers should consider increasing their risk appetite and proactively identify market opportunities where coverage gaps currently exist.
The issue of COVID-19 forbearance measures was on the agenda for these meetings, and I understand that a number of firms indicated that they will also take account of COVID-19 restrictions when setting premiums. It is Minister of State Fleming’s intention to meet with the CEOs later in the year to continue to review matters.
In conclusion, I assure the Deputy that both Minister of State Fleming and I are committed to continuing our engagement with insurers and other relevant stakeholders on this important issue. We believe it is important that insurers demonstrate that they are reflecting any savings in a transparent, proactive manner. As such, we will continue to highlight our position on the need to support customers throughout this crisis period.
