Insurance premium price controls
Collins described the two-month notification requirement and said minor, limited applications could now be decided within 21 days on a trial basis, while major increases would still receive full examination. Seven of 12 applications had been handled under the new procedure.
asked the Minister for Industry, Trade, Commerce and Tourism if he will give details of the existing price control system for insurance; and if he will specify and changes that have taken place in the system in the recent past.
Comment on this
In accordance with the Prices and Charges (Notification of Increases) Order, 1979, insurers are required to give to the Minister two months notice of any proposed increase in insurance premium rates.
Applications for increases in insurance premium rates are examined thoroughly by reference to criteria set out in the National Prices Commission's report for July 1983 (No. 130, pages 44-53).
I have recently made certain changes to the administrative element of the system of price control which, without sacrificing the detailed examination of price increases generally, will allow the speedier processing of price increases, particularly those of a limited application or of a minor nature. Under the revised system particular applications may be approved within 21 days of notification.
Comment on this
I specifically asked the Minister of State to tell us what new changes had taken place in the system of price structuring. Will he specify now in some detail the new administrative structure he has set up to deal with this matter? That is what the question was about, not the waffle we have had to listen to from the Minister.
Comment on this
There is no change in the procedure regarding the two months notification to my Department. In relation to applications of a limited nature or of minor importance, we have decided on a trial basis, which will be reviewed within a year, that we may take a decision within 21 days of notification. Considerable concern has been expressed by insurance companies at the time it takes to get increases and the insurance representative body have welcomed the alteration in the system. I can assure the House that any application of major importance will be examined fully and comprehensively, as has been the case to date.
Comment on this
Will the Minister of State indicate how many applications he has for premium increases and how many have been subjected to the new 21 day administrative procedure?