Michael Collins
Question:119. Deputy Michael Collins asked the Minister for Finance the reason a person's insurance premium has increased so much (details supplied); and if he will make a statement on the matter. [49341/23]
View answerTuesday, 14 November 2023
Questions (119)
Written answers
I note that the details supplied relate to an increase in the cost of a motor insurance policy. As the Deputy will appreciate, I am unable to comment on individual cases.
Moreover, neither the Minister for Finance, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products. This position is reinforced by the EU framework for insurance (the Solvency II Directive).
Generally, it understood that firms use a combination of actuarial-based rating factors in making their individual decisions on whether to offer motor cover and what terms to apply. In addition, insurers price in accordance with their specific claims experience and do not use the same combination of rating factors.
According to Insurance Ireland, premium levels may increase across the board due to the current market trends, equally, a customer’s own premium might increase because their level of risk has increased. Premium levels may also reduce based on the market or a lower risk profile.
It is therefore important for policyholders to compare with other providers at renewal time to ascertain if they can get a better consumer-focused deal by switching providers. Insurance Ireland has detailed advice around motor insurance and the benefits of shopping around on its consumer website: www.understandinginsurance.ie/.
In addition, Insurance Ireland also operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover. This can be accessed by constituents by ringing 01-676-1820 or by emailing feedback@insuranceireland.eu.
More broadly, I wish to reassure the Deputy that this Government has continued to target policy measures to address the cost of insurance, through the Action Plan for Insurance Reform. Key achievements include the new Personal Injuries Guidelineswhich have reduced average award levels by nearly 40 per cent, including for motor claims.
According to CSO data for October 2023, the price of motor insurance reduced by 15 per cent since the implementation of the Guidelines, and was 42.9 per cent lower than its peak in July 2016. It is my expectation that over time, the cumulative implementation of the Action Plan measures will generate additional gains for motor insurance customers.
Minister of State Carroll MacNeill will be meeting shortly with the main insurance firms here in order to stress the need to reflect all savings from this reform agenda in their product offering, including via lower premiums.
I also look forward to the upcoming National Claims Information Database motor report, which will provide important insights into the health of the motor insurance market. This rich data source will continue to support Government in monitoring the impact of reforms, including on the premiums paid by consumers.