Dáil Éireann Debate, Tuesday - 15 June 2021
67. Deputy Mick Barry asked the Minister for Finance the steps he will take to make insurance premia more affordable by limiting the large profits in the sector; and if he will make a statement on the matter. [31780/21]
View answer69. Deputy Aindrias Moynihan asked the Minister for Finance his plans to ensure that insurance premia are successfully reduced for motorists, businesses and other users in line with the revision of guidelines for personal injury awards; if his attention has being drawn to increases in premia for SMEs; the measures being taken to ensure that the benefits to changes in claims playouts are being passed onto customers; and if he will make a statement on the matter. [31756/21]
View answer126. Deputy Dara Calleary asked the Minister for Finance the engagement he has had with insurance companies in relation to reducing premia for consumers; and if he will make a statement on the matter. [31770/21]
View answer404. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which insurance costs for public liability and all other forms of insurance have become affordable; and if he will make a statement on the matter. [32086/21]
View answerI propose to take Questions Nos. 67, 69, 126 and 404 together.
The availability of affordable insurance is a key policy priority as reflected in the Government’s Action Plan for Insurance Reform. In this regard, I welcome the adoption of the new Personal Injuries Guidelines, which came into force on 24 April. This is a key achievement in the Government’s reform agenda that was realised several months ahead of schedule.
The Guidelines significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Of note is that a number of common injuries will now move to the jurisdiction of the District rather than the Circuit Court, thus reducing associated legal fees. The Guidelines also provide guidance in relation to injuries previously not included in the Book of Quantum and will be used by both the Personal Injuries Assessment Board and the judiciary. Therefore, the Guidelines should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using the Personal Injuries Assessment Board to settle claims. This in turn should further reduce the costs of claims, particularly legal fees. I have previously set out my view that these costs rather than the profit component tend to represent a bigger factor in the cost of insurance premiums. As such it is important that they are lowered.
In terms of the benefits accruing from reduced award levels, my expectation is that insurers will live up to commitments made, and will now commence reflecting savings to consumers, businesses and other groups. In this regard, I recently met with the CEOs of the main insurers operating in Ireland to set out the Government’s expectations in this regard and hear how they will respond to these recent developments. These engagements were positive and I will meet with them again later this year to review progress.
While I continue to believe that this engagement is key to holding insurers to account, I have also asked officials in the Department to engage with the Central Bank to consider what enhancements could be made to improve transparency further through the National Claims Information Database so that the impact of the Guidelines can be seen in future motor, employer and public liability reports. Technical work is commencing on this and I hope to return to the House later this year with proposals.
