Dáil Éireann Debate, Tuesday - 21 September 2021
57. Deputy Emer Higgins asked the Minister for Finance his views on the conclusion of the recent CCPC investigation regarding insurance; and his views on whether the binding agreements entered into by insurance companies will further reduce insurance premiums for drivers. [44682/21]
View answerI welcome the outcome of the CCPC’s investigation and the commitments entered into by the parties to that investigation. Furthermore, I also note the CCPC’s ongoing concerns regarding the culture within the Irish insurance industry.
The outcome of the CCPC’s investigation underlines the importance of insurance in general and the impact of its cost and availability on consumers, businesses and community groups. The Government remains committed to reform of the sector, through the Action Plan for Insurance Reform . The first six-monthly Implementation Report of the Action Plan, published in July 2021 indicates that work is progressing well to implement these important reforms, with 34 of the 66 actions now complete.
The upcoming Competition (Amendment) Bill is a priority this year for Government, as part of our overall Action Plan commitments to reform the insurance sector. This new law, to be published this autumn, will significantly strengthen the CCPC’s powers, giving them the ability to administer significant fines for breaches of competition law.
Separately, one of the central achievements in the first half of this year under the Action Plan was the implementation of the Personal Injuries Guidelines, which was realised several months ahead of schedule. These significantly reduce award levels for many categories of common injuries, particularly those of soft tissue.
The Guidelines should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using the PIAB to settle claims. This in turn should further reduce the costs of claims. It is my expectation is that insurers should now be reflecting savings from reduced award levels to customers, in line with past commitments, in the form of reduced premiums across their product lines.
Minister for State Fleming has had number of positive engagements with the CEOs of the main insurers operating here on the matter, and they have indicated that they will respond positively to the Guidelines. He will meet with them again later this year to review their ongoing actions.
Another significant achievement of the reform agenda is the establishment of the Office to Promote Competition in the Insurance Market within the Department of Finance. The Office has held a number of meetings with several key stakeholders, including insurance providers, representative bodies and other civic society groups, to understand gaps in the Irish insurance market. Its aim is to help expand the risk appetite of existing insurers and explore opportunities for new market entrants in order to increase the availability of insurance. The Office will meet the CCPC to discuss their recent investigation.
I would also add that work remains ongoing across Government Departments to deliver further key aspects of the Action Plan over the coming months. Furthermore, Minister of State Fleming intends to shortly bring forward legislation to help increase transparency and provide enhanced protections for consumers.
In conclusion, securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my firm belief that implementation of the Action Plan will have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.
