Pearse Doherty
Question:189. Deputy Pearse Doherty asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the Action Plan for Insurance Reform. [7125/22]
View answerThursday, 10 February 2022
Questions (189)
Written answers
The Cabinet Committee Sub-Group on Insurance Reform, of which I am a member, published the Action Plan for Insurance Reform in December 2020. This is one of the most important programmes of reform that this Government will undertake.
The Plan sets out 66 actions to bring down costs for consumers and business; introduce more competition into the market; prevent fraud and reduce the burden on business, community, and voluntary organisations.
On the 6th of July 2021 Government published the first Implementation Report of the Action Plan showing that 34 of the 66 actions had been delivered in the first six months of the Plan.
Government through the Sub-Group on Insurance Reform continues to oversee and drive forward the Action Plan. A meeting of the Sub-group took place yesterday to hear updates from Ministers on outstanding actions. Following this meeting I expect the 2nd Implementation Report of the Action Plan will be published shortly.
Across Government Departments significant actions have already been completed.
Principal actions delivered to date include the establishment of the Office to Promote Competition in the Insurance Market and the Insurance Fraud Coordination Office. Legislation to strengthen the laws on perjury has been enacted. The commencement of the Personal Injury Guidelines is a milestone reform. Under the Guidelines award levels have reduced across nearly all ranges with the level of reduction ranging from 31% to 69% depending on the severity of injury. PIAB data shows a significant downward shift in award values which will reduce the cost of claims.
Following Government approval, the Department of Finance published the General Scheme of the Insurance (Miscellaneous Provisions) Bill 2021 on October 20, 2021, to enhance transparency and ensure consumer protection. The Bill covers a number of insurance-related matters. Drafting of the Bill has now commenced.
While progress on these actions is welcome, Government is committed to doing more to reduce insurance costs. The Minister for Justice is considering legislative proposals to reform the law in the area of occupier’s liability.
Regarding actions under my own Department, yesterday I published the General Scheme of the Personal Injuries Resolution Board Bill 2022 was published. The Scheme proposes to amend the Personal Injuries Assessment Board Act 2003-2019 in a number of ways including:
- PIAB will be given a new function – to offer mediation as a means of resolving a claim.
- PIAB will retain claims of a wholly psychological nature.
- PIAB will deepen its analysis and public information roles.
- PIAB will have additional time to assess claims where an injury is yet to settle rather than releasing to litigation.
- The Court’s discretion regarding costs in litigation will be tightened.
Furthermore, the Competition (Amendment) Bill 2022 was published on the 31st of January 2022 and introduced to the Dáil this week. The Bill proposes to give more powers to the Competition and Consumer Protection Commission (CCPC) and the Commission for Communications Regulation (ComReg) to protect consumers and challenge anti-competitive practices by business.
I am confident that through the implementation of the actions set out in the Action Plan we are delivering meaningful reform of the insurance market and creating the conditions for the provision of affordable insurance for consumers and business.