Dáil Éireann Debate, Tuesday - 22 May 2018
144. Deputy Michael McGrath asked the Minister for Finance when he expects recommendation No. 2 of the report on the cost of motor insurance to be fully completed; his views on whether insurance premiums should be broken down between mandatory and non-mandatory elements; and if he will make a statement on the matter. [22340/18]
Amharc ar fhreagra145. Deputy Michael McGrath asked the Minister for Finance when he expects recommendation No. 3 of the report on the cost of motor insurance to be fully completed; his views on whether the current renewal notification period should be extended from 15 days to 20 working days; and if he will make a statement on the matter. [22341/18]
Amharc ar fhreagraI propose to take Questions Nos. 144 and 145 together.
The implementation of Recommendations 2 and 3 is being carried out by the Central Bank of Ireland. As Minister for Finance, I support the objective of the Recommendations which involve enhancing the information provided to consumers and improving their experience in taking out an insurance policy.
On 9 November 2017, the CBI published Consultation Paper 114 (CP114): “Amendments to the Non-Life Insurance (Provision of Information) (Renewal of Policy of Insurance) Regulations 2007 (S.I. No. 74 of 2007)”. The purpose of the consultation was to seek views from interested stakeholders on Recommendations 2 and 3. The proposals within the consultation included insurers providing additional information on the premium breakdown to consumers and extending the current renewal notification period, in respect of motor insurance, from 15 working days to 20 working days. The consultation further considered whether the extension of the renewal notification period should be broadened to include other classes of businesses that fall within S.I. No. 74 (e.g., accident and health, fire and other damage to property and general liability insurance).
Eight submissions were received by the Central Bank, including one from the Department of Finance seeking the inclusion of last year’s premium in the additional information being provided to policyholders.
I am informed by the Bank that an analysis of the submissions is being undertaken with continued consideration of potential amendments to S.I. No. 74. They have indicated that a further consultation may be warranted arising from the submissions. In that case, the Central Bank will aim to have any amendments that may be required to S.I. No. 74 completed by the end of the year. This potential delay is flagged in the monitoring dashboard of the 5th Update Report available on the website of the Department of Finance.
