Dáil Éireann Debate, Wednesday - 19 January 2022
355. Deputy Catherine Connolly asked the Minister for Finance the analysis his Department has carried out into increases in insurance premiums based on age; the analysis his Department has carried out into whether this practice is discriminatory; his plans to address potential discrimination in this regard; and if he will make a statement on the matter. [2210/22]
Amharc ar fhreagraAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, have any influence over the pricing or provision of insurance products, as this is a commercial matter assessed on a case-by-case basis. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct insurance companies as to the pricing level that they should apply to particular categories of individuals.
On a general level, insurance companies consider a number of risks when determining the premium for a proposed insurance policy. For example, in the case of motor insurance, I understand that insurers use a combination of rating factors in making decisions on whether to offer cover and what terms to apply, such as: the age of the driver; vehicle type; claims record; driving experience; number of drivers; how the car is used; etc. Insurers also price in accordance with their specific claims experience and do not use the same combination of rating factors. Accordingly, premium prices vary across the market.
With regard to the Deputy’s query about potential discrimination, I would note generally that the Equal Status Acts 2000-2018 prohibit certain kinds of discrimination, including in the provision of services. The legislation protects against discrimination on nine specific grounds, including age. However, in relation to insurance, the legislation also provides that people can be treated differently on any of the grounds (except gender) – but only if the differences are based on actuarial or statistical data or other relevant underwriting or commercial factors, and are reasonably based.
Where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes that 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.
Finally, it may be useful for the Deputy to know that Insurance Ireland, the representative body for the insurance industry in this country, operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. This can be contacted at feedback@insuranceireland.eu.
