Dáil Éireann Debate, Tuesday - 22 November 2016
166. Deputy Frank O'Rourke asked the Minister for Finance if he will consider bundling the national private car insurance requirement for low income persons and families into one single tender (details supplied); and if he will make a statement on the matter. [35710/16]
Amharc ar fhreagraI am not considering a proposal such as that suggested by the Deputy. As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.
This inability to intervene in such matters is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
In addition, it should be noted that bundling together any cohort of persons for the purposes of procuring insurance would not allow for an individual assessment of the risk of insuring each person, which is the manner in which the insurance sector operates. It is unlikely an insurance company would be willing to accept risk on that basis without having due regard to the individual factors relative to each person.
However, I do accept that it is possible for the State to play a role in helping to stabilise the market. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. The initial focus of the Working Group is on the factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses.
The Working Group provided me with an initial set of emerging recommendations at the end of October 2016. Since then, it has been working to finalise its Report and to develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions. The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation.
