asked the Minister for Industry and Commerce if he is in a position to prescribe codes of conduct to be observed by insurers in their dealings with proposers of policies of insurance and policy holders renewing policies of insurance in respect of duty of disclosure and warranties; and if he will make a statement on the matter.
Written Answers. - Codes of Conduct for Insurers.
31.
Section 61 of the Insurance Act, 1989, empowers the Minister for Industry and Commerce, where he considers it necessary in the public interest, and following consultation with the insurance industry and consumer representatives to prescribe codes of conduct to be observed by insurers in relation to duty of disclosure and warranties on the part of prospective or actual policyholders.
My Department is at present having discussions with the Irish Insurance Federation, which is the representative body for the majority of insurers operating here. The federation are prepared to adopt a code of practice in respect of duty of disclosure and warranties. To this end, they are preparing a document, modelled on the voluntary code adopted by the Association of British Insurers, which will be completed and submitted to my Department in the near future. This document will be the basis of further discussions with the insurance industry. Consultations will also take place with representatives of insurance intermediaries and, of course, consumer interests.
It is my Department's confident expectation that an acceptable voluntary code of practice, which would be adhered to by all insurers, will emerge from the current discussions.
While I am anxious that codes of practice in the industry be implemented as soon as possible, I am also concerned that those codes achieved the maximum protection for the consumer in so far, of course, as that protection does not unfairly prejudice insurers' interests. The issues, therefore, need to be thoroughly examined, before any code, whether voluntary or statutory, is put in place.