Paul Murphy
Ceist:134. Deputy Paul Murphy asked the Minister for Finance his views on the increase in motor insurance costs; his plans to assist in reducing these costs; and if he will make a statement on the matter. [14073/16]
Amharc ar fhreagraThursday, 2 June 2016
Ceisteanna (134)
Freagraí scríofa
As 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 that the increasing cost of motor insurance has become an issue for a large number of households and businesses. 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. 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 first phase of the Review is dealing with the motor insurance compensation framework and this work is nearing completion. The next phase of the Review will deal with the issue of insurance costs and it will include an examination of the factors contributing to the current rise in insurance premiums.
The Review of Policy in the Insurance Sector will continue over the coming months.