Dáil Éireann Debate, Tuesday - 6 November 2018
192. Deputy Michael McGrath asked the Minister for Finance the position with regard to insurance companies taking into account a person's previous criminal conviction when deciding to offer home or car insurance; and if he will make a statement on the matter. [45156/18]
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 such rules. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of policyholders.
Notwithstanding this, my officials raised the Deputy’s query with Insurance Ireland, the representative body for the insurance industry in Ireland. On the basis of this enquiry, I have been advised that as an insurance contract includes a duty of utmost good faith on both the insurer and insured, a duty of disclosure of all material facts is required from which insurers will make their underwriting decision on the provision of cover. In general, insurers will use a combination of individual rating factors. Such factors include, but are not limited to age, type of driving licence, engine size, rebuilding cost of property, previous convictions if applicable, etc., but they will vary by insurer depending on the market segments, on which individual insurers focus and the claims experience of individual insurers.
Insurance Ireland also acknowledged that access to and fair treatment by financial services providers is an important part of social inclusion which is mandated by the Consumer Protection Code. It is noted in this regard that the Criminal Justice (Spent Convictions and Certain Disclosures) Act 2016 allows for certain convictions to become spent after a period of time.
In relation to motor insurance specifically, the Deputy is aware of the Declined Cases Agreement (DCA). That agreement is adhered to by all motor insurers in Ireland. It states that if a consumer is unable to secure a quotation on the open market, he or she may be in a position to avail of the Declined Cases Agreement (DCA) process. Under the terms of the DCA, the insurance market will not refuse to provide insurance to an individual seeking insurance if the person has approached at least three insurers and has not been able to obtain cover from them.
Data obtained from Insurance Ireland states that the total number of DCA applications in 2017 was 1,423. In that year, ‘convictions’ was noted 261 times as the primary reason the applicant was declined motor insurance.
There are further details available on the Insurance Ireland website in relation to the DCA, while Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu or 01-6761914.
