Dáil Éireann Debate, Tuesday - 6 December 2016
103. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the fact that insurers are charging significant sums for a change of address on motor insurance; if the Financial Services Ombudsman has ever made any findings regarding this practice; and if he will make a statement on the matter. [38296/16]
Amharc ar fhreagraIt has been brought to my attention that some insurance companies are charging significant sums for a change of address on a motor insurance policy. While I do not agree with this practice, neither I, nor the Central Bank can directly influence insurance pricing 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 rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. It should be noted that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.
However, I have established the Cost of Insurance Working Group and appointed Minister of State, Deputy Eoghan Murphy, as Chair. The initial focus of the Working Group is on the review of factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses. A broad range of issues affecting the cost and availability of motor insurance are being examined by the Working Group, including the issue of transparency of pricing in the insurance industry.
The Working Group provided me with an initial set of emerging recommendations at the end of October 2016 which have been published on the Department of Finance website and are available at
http://www.finance.gov.ie/what-we-do/banking-financial-services/financial-services-division-2-eu/insurance-policy-and-0.
Since then, the Working Group has been working to finalise their Report and to develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions. The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation.
Finally, the Financial Services Ombudsman (FSO) has confirmed to me that complaints relating to issues arising from a change of address on a motor insurance policy would be recorded as complaints relating to motor insurance generally. Consequently the FSO is unable to confirm any specific findings in relation to this particular issue.
