Dáil Éireann Debate, Tuesday - 24 July 2018
298. Deputy Michael McGrath asked the Minister for Finance the steps the Central Bank is taking to prevent dual pricing of insurance policies whereby teaser rates are offered in the first year; his views on the use of such a pricing model; if the Central Bank has powers to prevent this from taking place; his views on whether new and existing insurance customers should be treated the same; and if he will make a statement on the matter. [34198/18]
Amharc ar fhreagraEnsuring that the interests of consumers of financial services are protected continues to be a key priority for the Central Bank. While the Central Bank does not have a role in relation to pricing considerations or competitiveness, it does have a role in ensuring that firms assess risks appropriately and offer motor insurance at a price that adequately takes into account the conditions prevailing in the market such as increasing claims costs. This ensures firms have the ability to pay all policyholders claims without recourse to public funds.
The Central Bank does not have a role in the setting of premiums, and like all European supervisory authorities, is explicitly prohibited by Article 181 of the Solvency II Directive from doing so.
However, the statutory Consumer Protection Code contains requirements in relation to the disclosure of charges and insurance quotes. Section 2.6 provides that a regulated firm must make “full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer”.
In addition, under section 4.30 “A regulated entity providing an insurance quotation to a consumer must include the following information in the quotation, assuming that all details provided by the consumer are correct and do not change:
1. the monetary amount of the quotation;
2. the length of time for which the quotation is valid; and
3. the full legal name of the relevant underwriter.
