Decisions on the underwriting of insurance risks and the setting of premiums are matters of judgment by individual private insurance companies. EU law prevents us from intervening directly in the matter. Motor insurance premiums are normally based on underwriting experience, including trends in the level, frequency and cost of claims, for particular risks and classes of risk.
In relation to the refusal of motor insurance companies to quote for motor insurance for younger drivers, I point out that the declined cases agreement between our Department and the authorised motor insurance companies offers the provision of a quotation subject to, inter alia, written evidence of five refusals of cover from motor insurers.
Under the Equal Status Act, 2000, an individual who considers that he or she has experienced discrimination within the meaning of the Act may refer a complaint to the Director of Equality Investigations for investigation or mediation. Among the areas of potential discrimination are the age or sex of an individual.
The Motor Insurance Advisory Board has been charged with advising me on motor insurance costs and, in particular, examining the relationship between the incidence of claims and the premiums charged for various classes of policyholder identified by age and sex. The issue of the high cost of insurance for young drivers is especially being examined by the board. I expect to receive the final report of the board within a matter of weeks. In the light of its recommendations, the Government will consider what further action is appropriate and necessary having carried out a detailed analysis of the report.
