Dáil Éireann Debate, Tuesday - 15 June 2021
316. Deputy Carol Nolan asked the Minister for Finance if car insurance providers are entitled to discriminate in the provision of insurance policies based on age; and if he will make a statement on the matter. [30528/21]
View answerAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct companies as to what terms and conditions apply in relation to cover.
The Equal Status Acts 2008-2018 prohibit certain kinds of discrimination in the provision of goods, facilities and services, obtaining or disposing of accommodation and in relation to educational establishments. The legislation protects against discrimination on nine specific grounds, including age. However, the legislation also provides that people can be treated differently on any of the grounds (except gender) in relation to insurance – but only if the differences are based on actuarial or statistical data or other relevant underwriting or commercial factors and are reasonable.
Insurance companies consider a number of risks when determining the premium for a proposed insurance policy. I understand that motor insurers, in making decisions on whether to offer cover and what terms to apply, use a combination of rating factors such as the age of the driver, the type of car, claims record, driving experience, number of drivers, how the car is used, etc. 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.
Finally, it may be useful for the Deputy to know that Insurance Ireland, the representative body for the insurance industry in this country, operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. This Information Service can be contacted at feedback@insuranceireland.eu.
