Paul McAuliffe
Question:124. Deputy Paul McAuliffe asked the Minister for Finance his progress to date in insurance reform; and if he will make a statement on the matter. [55891/22]
View answerThursday, 10 November 2022
Questions (124)
Written answers
The Programme for Government recognises that insurance is a significant issue for some businesses, motorists, and households, as well as sporting, community, and voluntary groups. Accordingly, the Cabinet Committee Sub-Group on Insurance Reform was established to prioritise further action in this area, with a focus on helping to reduce insurance costs, and increasing the availability of cover.
This reform work is being driven through the Action Plan for Insurance Reform, which sets out 66 actions across the policy areas of several Departments, including the Department of Finance. The third update on progress of the Action Plan for Insurance Reform Implementation Report shows that the majority of actions are now considered complete. These include:
- the implementation of the Personal Injuries Guidelines, with recent data from the Personal Injuries Assessment Board (PIAB) showing a 38 per cent reduction in the overall average award, compared to the previous Book of Quantum;
- the Central Bank’s ban on price walking for home and motor insurance, which will end the “loyalty penalty” imposed on some long-term customers;
- the establishment of the Office to Promote Competition in the Insurance Market, which aims to lower costs by promoting greater competition in the Irish market;
- the enactment of the Criminal Justice (Perjury and Related Offences) Act 2021, which places perjury on a statutory footing for the first time;
- the establishment of an Insurance Fraud Coordination Office within the Garda National Economic Crime Bureau; and,
- the enactment of the Competition (Amendment) Act 2022, which will enhance the enforcement powers of the Competition and Consumer Protection Commission (CCPC).
Work is also ongoing to complete the outstanding aspects of the Action Plan, including legislation to rebalance the duty of care, and to strengthen the PIAB. In addition, my Department brought forward the Insurance (Miscellaneous Provisions) Act 2022, a pro-consumer piece of legislation, which complements this ambitious reform agenda, and will further increase transparency in the insurance sector.
CSO data for September shows a continued decline in motor insurance prices during 2022, including a 10 per cent reduction year-on-year. I believe this downward trend, at a time of overall price rises, indicates that our work on insurance reform is having a positive outcome for consumers. It is my hope that the cumulative impact of this reform package will lead to further improvements in the motor insurance market, as well as improvements in insurance for other groups.
In this regard, Minister of State Fleming recently held a third series of bilateral meetings with the CEOs of the main insurers, in order to reiterate the Government’s expectation that all savings from this comprehensive suite of reform measures are passed on to customers. Government will continue to monitor the impact of reforms, including through future reports of the National Claims Information Database (NCID), which is unique in Europe in terms of the transparency it brings to the insurance sector.