Competition in the insurance market remains a key priority for the Government.
We want to reduce the burden of insurance costs, through the ‘Action Plan for Insurance’, for all sectors of society including SMEs. Already, 90% of the actions under the Plan have been implemented.
Two key reforms to date have been the adoption of the Personal Injuries Guidelines (by the Judicial Council) in April 2021 and under my Department, the reform of the Personal Injuries Assessment Board (PIAB) via the Personal Injuries Resolution Board Act 2022.
PIAB’s ‘Personal injuries Awards Values Report’ in November 2022 shows that injury award values settled under the new Injuries Guidelines in H1 2022 were on average 38% lower than in 2020 under the previous Book of Quantum. Award values have long been recognised as a key contributor to insurance premiums.
There are clear signs that the market is responding to the Government’s reform agenda, with insurers moving into areas that had previously proved problematic such as: inflatables hire; equestrian activities; and childcare. We have also seen that incumbent providers are also expanding their product offerings into areas such as SMEs, agri and renewables. This is a further sign of confidence that Government reforms are working and is an extremely welcome development.
The Government’s Office to Promote Competition in the Insurance Market , chaired by Minister of State Carroll MacNeill, continues to meet with relevant stakeholders to encourage new entrants into the market as well as for existing insurers to expand their risk appetite. The Office is also working closely with IDA Ireland, an agency of my Department, to bring new entrants into the Irish insurance market and to improve its overall competitiveness. The ongoing reform program is being leveraged to attract potential new entrants into the market.
The Cabinet Committee Insurance Reform Sub-Group continues to review developments in the insurance sector, monitor pricing, and engage with stakeholders to resolve issues in the market. While Government is aware of the globally interconnected nature of insurance, it is determined to get its domestic house in order by reforming the insurance environment in Ireland and bringing extra capacity to the market which will assist in the start-up and growth of SMEs in our country.
In terms of next steps, re-balancing the Duty of Care legislation (the Occupiers’ Liability Act 1995) is now the main priority and is being led by the Minister of Justice via the Courts and Civil Law (Miscellaneous Provisions) Bill 2022. The Bill has completed its passage through the Dáil and passed Second Stage in the Seanad on the 27 April. It is expected that this legislation when enacted will have a very positive impact on insurance costs for all businesses including SMEs.
