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Insurance Industry

Dáil Éireann Debate, Tuesday - 26 April 2022

Tuesday, 26 April 2022

Questions (509)

Neasa Hourigan

Question:

509. Deputy Neasa Hourigan asked the Minister for Finance if his Department has examined alternative insurance systems, particularly in relation to licensed premises, such as the no-fault system that exists in New Zealand; and if he will make a statement on the matter. [20320/22]

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Written answers

In relation to the proposed ‘no-fault’ insurance systems in other jurisdictions, where the State pays compensation and/or the cost of rehabilitation while the public pays for this system through taxes, the Deputy should note that this has previously been examined by the Cost of Insurance Working Group. This concluded that the introduction of such a model into the State would have impacts not only on insurance premiums, but also potentially on taxation and social security, as well as having constitutional, national and European ramifications, such as on EU insurance directives. It is therefore difficult to envisage a no-fault system as it exists in New Zealand being applied in Ireland in view of our current legal and constitutional framework. The Deputy should also note that introducing a no-fault model could have fundamental cost implications in terms of raising revenue in the form of direct and indirect taxation.

Finally, I would like to take this opportunity to assure the Deputy that 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. The Action Plan for Insurance Reform remains the key policy platform to deliver these changes. I can assure the Deputy that I will continue to work with my colleagues to achieve this important goal.

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