358. Deputy Mark Ward asked the Minister for Finance if insurance companies are allowed to charge more for a product if the customer opts to pay monthly versus one upfront payment; if there are regulations to restrict the additional amount that can be charged; and if he will make a statement on the matter. [63231/25]

As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. However, neither I nor the Central Bank of Ireland can intervene in the provision or pricing of insurance, or direct as to what cover is provided, as is reinforced by the EU framework for insurance (Solvency II Directive).

Transparency in the insurance sector is a key priority for Government and the latest Action Plan for Insurance Reform, published in July 2025, commits to expanding transparency in the insurance sector through faster release of NCID data, the development of a transparency code and a review of the price-walking ban.

The Consumer Protection Code 2012 requires insurance firms to act honestly, fairly, and professionally in the best interests of its customers and the integrity of the market and make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer.

In 2023, the Central Bank of Ireland completed a review that examined a number of pricing and claims practices adopted by domestic motor insurance providers. This review included the impact that the method of payment, as chosen by a policyholder, can have on the premium calculation, and whether or not it was sufficiently clear to consumers. The Central Bank’s review identified that while details on charges and conditions associated with payment options were included by insurers in various formats such as the policy documentation, terms of business, policy booklets, and the online quotation journey, the information provided was not always clear, or upfront.

Following the Central Bank’s review, guidance was issued to the insurance industry requesting that, where necessary, insurers should take action(s) to ensure full transparency in relation to the impact of the payment method chosen, this includes clearly presenting cost comparisons for full payment versus instalments, and disclosing when payment method is used as a risk rating factor. Regulation 338 of the revised Consumer Protection Code 2025, which will be effective from March 2026, also specifically requires insurance undertakings and intermediaries to provide an explanation and the monetary value of any difference in cost between paying the premium by way of a lump sum or in instalments.

If a consumer has any concerns or questions in relation to their insurance product, on instalments, or any other matter, or wishes to make a complaint, they can contact their insurer or broker that sold them the product. If a consumer is not satisfied with how their complaint is dealt with by a regulated entity, they can make 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. Investigations by the FSPO are free of charge to the complainant.