Pádraig O'Sullivan
Question:85. Deputy Pádraig O'Sullivan asked the Minister for Finance if insurance companies are providing refunds (details supplied); and if he will make a statement on the matter. [32279/21]
View answerWednesday, 16 June 2021
Questions (85)
Written answers
I note that the details supplied relate to a query about the provision of motor insurance rebates in the context of the COVID-19 pandemic. 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. As the Minister for Finance, I am also not in a position to comment on individual cases.
Nevertheless, working to protect insurance policyholders during and after the COVID-19 crisis is a priority issue for Government, and is therefore included within the Action Plan for Insurance Reform. Throughout the pandemic, Minister of State Fleming and I have consistently called on insurers to treat their customers honestly, fairly and professionally, in line with the Central Bank’s Consumer Protection Code. We have emphasised the importance of insurers supporting their customers during these difficult times by continuing to provide necessary reliefs, and responding to both the Government’s insurance reforms and the pandemic by lowering premiums.
Minister of State Fleming has had extensive engagement with insurers on these points, including a series of meetings in April at which he pressed the need for premium reductions in light of the new Personal Injuries Guidelines. He outlined that upon renewal, the Government expects premiums to reduce for all classes of insurance, including motor insurance, and that insurers should consider increasing their risk appetite to provide increased cover in new areas.
This engagement was positive, with insurers indicating that they will lower premiums in response to the Guidelines. The issue of COVID-19 forbearance measures was included 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 insurers again later in the year to review progress in this regard.
I am pleased to note that most of the main insurers operating in Ireland have twice renewed their commitment to forbearance measures announced by several members of Insurance Ireland last year. I believe it is important that insurers now take a long term view towards supporting their customers, as we work to rebuild the economy and recover from the impact of the pandemic. Both Minister of State Fleming and I will remain proactive in engaging with industry on this matter, as well as working with colleagues to implement further key reforms, which I hope will go some way to improving the cost of insurance for all groups, including motorists.
Finally, where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.