Dáil Éireann Debate, Tuesday - 30 June 2020
62. Deputy Emer Higgins asked the Minister for Finance further to Parliamentary Question No. 45 of 3 June 2020, if a company (details supplied) is in breach of the voluntary agreement by increasing the premium for a business; and if he will make a statement on the matter. [13364/20]
Amharc ar fhreagraAs outlined in my previous reply to the Deputy on this issue, I am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times. However I am not in a position to adjudicate as it is very much a matter for the insurer based on the merits and specifics of each case.
For instance, on a general level, my understanding is that insurers will use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. For example, in relation to commercial vehicle insurance, factors may include those such as the age and type of vehicle, how and where it is used, the claims record, the number of drivers, and the storage and use of the vehicle. Insurers also price in accordance with their own past claims experience, and do not all use the same combination of rating factors, so as a result prices vary across the market. While I cannot comment on the specific case referenced in the details supplied, a number of these factors may be influencing the reasons why the terms may change upon renewal. As I have consistently stated, it is my view that it is important for consumers to shop around on their insurance policies in order to achieve a lower price where possible.
As the Deputy notes in her question, the forbearance agreement entered into by the relevant insurers is voluntary. As a result, neither I, nor the Central Bank, can enforce any of its provisions nor adjudicate on elements of it. Nonetheless, I expect insurers to act in line with the principles of the agreement. Furthermore, as the Deputy will be aware, I asked Insurance Ireland to put in place a mechanism which provides proof of delivery. My Department received the first “Activity Report” on this issue from Insurance Ireland on 25 May. This Report shows that in the period 23 March to 4 May, Insurance Ireland members processed 4,093 forbearance requests for business customers worth a total of €5,242,349. My officials have sought more detailed information from Insurance Ireland on the nature of the forbearance being offered, as I want to be certain that they are adhering to the spirit of the commitment they entered into. It should also be noted that my Department is in regular touch with the Alliance for Insurance Reform on these matters.
Finally, I would note that if a consumer has a problem with the service provided by their insurance provider, it is advisable that that they make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
