It is important to note that the decision to provide any specific form of insurance cover, and the price at which it is offered, is a commercial matter for insurance companies, based on an assessment of the risks they are willing to accept. Neither I, as Tánaiste and Minister for Finance, nor the Central Bank of Ireland, have the power to compel insurers to provide particular types of insurance or to provide it at a particular price. This is reinforced by the European framework for insurance (Solvency II Directive).
Officials in my Department engage frequently with Insurance Ireland – the trade body association for the insurance industry – on a range of insurance related issues. Insurance Ireland have advised that insurers use a combination of rating factors in making their individual decisions on whether to offer cover for motor insurance and what terms to apply. These factors can include driver age, where the vehicle is stored, and driving experience.
The Equal Status Acts 2000-2018 protects against discrimination on nine specific grounds, including age. However, the legislation also provides that people can be treated differently on any of the grounds (except gender) in relation to the provision of annuities, pensions, insurance policies or any other matter related to the assessment of risk, where such differences are based on the reasonable application of actuarial or statistical data or other relevant underwriting or commercial facts.
Transparency in the insurance sector is a key priority for the Government and a Transparency Code for the insurance industry is well advanced and will be published in the coming weeks. The Code will require insurers to provide simple, understandable explanations of how premiums are formed, what mitigating actions may be available to consumers, and what broader factors influence pricing. It will also ensure that consumers can directly receive additional information, upon request, to better understand the factors impacting their premium.
If an individual is not satisfied with how an insurer is dealing with them in relation to the provision of insurance, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the insurer.
If the consumer is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory 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.
