Dáil Éireann Debate, Wednesday - 31 March 2021
71. Deputy Aindrias Moynihan asked the Minister for Finance his plans to ensure that insurance premiums are successfully reduced for motorists, businesses and other users in line with the revision of guidelines for personal injury awards; and if he will make a statement on the matter. [17175/21]
View answer113. Deputy Peter Fitzpatrick asked the Minister for Finance the measures being taken to ensure that insurance premiums in Ireland are more aligned to other countries in the EU, given that despite a fall in insurance payouts, insurance premiums in Ireland continue to be amongst the highest in Europe; and if he will make a statement on the matter. [15411/21]
View answer386. Deputy Niall Collins asked the Minister for Finance his plans for insurance reform; his views on correspondence (details supplied); and if he will make a statement on the matter. [17308/21]
View answerI propose to take Questions Nos. 71, 113 and 386 together.
This Government is committed to bringing about meaningful insurance reform, as reflected in the Programme for Government. In this regard, the Action Plan on Insurance Reform contains 66 actions across several departmental policy areas. Its implementation is overseen by a Cabinet Sub-Group on Insurance Reform, the most recent meeting of which took place last week. High level achievements to date include: the adoption of Personal Injuries Guidelines by the Judicial Council which significantly reduce many common injury award levels and the creation within the Department of Finance of The Office to Promote Competition in the Insurance Market.
The Deputies will also be aware that last week, the Minister for Justice introduced amendments to the Family Leave and Miscellaneous Provisions Bill to implement these new Guidelines. As such the guidelines will now be in place ahead of schedule. This means that many claims will begin to be assessed by both the Personal Injuries Assessment Board (PIAB) and the judiciary using the guidelines rather than the Book of Quantum. Accordingly, this should mean more consistency and will help to bring more certainty to claimants and insurers, and thereby underscore the benefits of using PIAB. This in turn should further reduce the costs of claims, particularly legal fees.
In addition, I would hope that the improved insurance operating environment will help to attract new entrants into the Irish market, thereby increasing competition. I also strongly believe that this provides an opportunity for insurers to now increase their risk appetite, and extend cover to new market segments or areas they may have previously withdrawn from.
While the new Guidelines are a major step to reducing the cost of claims for insurers, I reiterate my strong expectation that insurers respond to this key piece of reform in a positive and generous manner by passing on these savings. The insurance industry previously committed to reduce premiums in line with lower award levels. As such, I am meeting the CEOs of the main firms in April to hear how they will meet this pledge.
In summary, the Deputies can be assured that the Government intends to ensure that all savings from the insurance reform agenda are passed on to consumers. Other necessary reforms remain important and the Department of Finance will continue to engage with all relevant stakeholders, in order to ensure that these begin to deliver a more sustainable and competitive insurance environment to the benefit of all groups in Irish society.
