Dáil Éireann Debate, Tuesday - 31 January 2017
138. Deputy Mattie McGrath asked the Minister for Finance the measures he proposes to implement to deal with the escalating costs of home insurance premiums; and if he will make a statement on the matter. [4443/17]
Amharc ar fhreagraAs 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 position 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.
The Deputy will note that, according to the official data from the Central Statistics Office, the cost of insurance connected with dwellings has remained largely stable since December 2011. It has increased and decreased at various times and fluctuated by less than 15% in total from its lowest to highest levels during those five years. It is currently 5.7% higher than it had been at the end of 2011. Comparably the cost of motor insurance is 51.7% higher than it had been in December 2011, and at times early last year had been as much as 60% higher. On the basis of the official data, I do not see the need to look at the issue of the cost of home insurance at this point in time within the context of the Cost of Insurance Working Group's ongoing review of the insurance sector. Nevertheless, my Department will monitor the cost of home insurance as part of the its ongoing policy work in the insurance sector.
Finally, the Cost of Insurance Working Group's report, which focusses on the cost of motor insurance, was published on 10 January 2017 and its implementation is already underway. Many of the recommendations and action points contained in that Report will have a positive impact on wider insurance sector, including the home insurance sector, through the creation of an enhanced claims environment, improved consumer protection and increased competitiveness.
