Dáil Éireann Debate, Tuesday - 31 May 2016
251. Deputy Thomas P. Broughan asked the Minister for Finance the measures he will take to address the high cost of motor insurance for young drivers; if he will consider re-establishing the Motor Insurance Advisory Board to investigate the issue; and if he will make a statement on the matter. [13416/16]
Amharc ar fhreagraAs Minister for Finance, I am concerned that there should be a stable insurance sector and that risks to policyholders and to the wider financial system are limited. I am aware of the increasing cost of motor insurance. However, the ability of the Government to influence insurance pricing is limited as insurance companies are required under European law to price in accordance with risk and neither I, as Minister for Finance, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing of insurance products.
While the provision and the pricing of insurance policies is a commercial matter for insurance companies, this does not preclude the Government from introducing measures that may, in the longer term, lead to a better claims environment that could facilitate a reduction in claims costs.
The question of the cost of insurance is a complex one involving a number of Government Departments, State Bodies and private sector organisations. While I do not intend re-constituting the Motor Insurance Advisory Board at this time, I have asked my officials to examine the factors which contribute to increasing costs of insurance.
This work is part of an overall review of policy in the insurance sector which my Department is carrying out in consultation with the Central Bank and other Departments, Agencies and external stakeholders. The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector.
The Review of Policy in the Insurance Sector will continue over the coming months and is expected to be completed by the end of this year.
