The Cabinet Committee Sub-Group on Insurance Reform oversees implementation of the Action Plan for Insurance Reform. This Plan sets out the Whole- of-Government approach, with 66 actions to improve the insurance environment for consumers, businesses and community groups. The most recent Implementation Report, published in November, shows that 90 per cent of the initiatives under the Action Plan are considered complete. Achievements to date include:
- implementation of the Personal Injuries Guidelines to replace the Book of Quantum;
- the commencement, by the Central Bank, of new Regulations to ban price walking following its Review of Differential Pricing in the Private Car and Home Insurance Markets;
- establishment of the Office to Promote Competition in the Insurance Market within the Department of Finance;
- enactment of the Personal Injuries Resolution Board Act 2022 , which will enhance the role of the Personal Injuries Assessment Board (PIAB) to facilitate an increase in the number of personal injury claims that may be resolved through the Board’s process and without recourse to litigation;
- enactment of the Competition (Amendment) Bill 2022 , which will enhance the enforcement powers of the Competition and Consumer Protection Commission (CCPC) – the Act provides for a new civil enforcement regime for the CCPC and ComReg with the power to levy significant administrative sanctions as well as other measures;
- launch of a databank for new entrants by the Central Bank of Ireland;
- establishment of an Insurance Fraud Coordination Office within the Garda National Economic Crime Bureau;
- publication, by the Central Bank, of the third National Claims Information Database (NCID) report on private motor insurance, and the two NCID reports on Employers’ Liability, Public Liability and Commercial Property Insurance;
- enactment of the Criminal Justice (Perjury and Related Offences) Act 2021 ;
- introduction of new regulations on solicitors’ advertising; and
- enactment of the majority of provisions under the Consumer Insurance Contracts Act 2019 .
Work is continuing across Government to complete outstanding reforms, include a rebalancing the “common duty of care”, via amendments to the Occupiers’ Liability Act 1995, in line with the Government policy objective of restricting the liability of occupiers. The legislation to amend the 1995 Act – the Courts and Civil Law (Miscellaneous Provisions) Bill 2022 – is the responsibility of the Minister for Justice and continues to progress through the Oireachtas. The Bill completed all stages in Dáil Éireann on 1 March and will now progress to Seanad Éireann for its consideration. This reform has been “an ask” by insurance reform campaigners and industry for some time, and it should help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses and community, voluntary and sporting groups.
In relation to insurance for bouncy castle operators, the Irish Inflatable Hirers Federation, the group which represents bouncy castle operators across the country, has collaborated with a major domestic broker to form a group insurance scheme. This resolves an insurance market pinch-point that had recently been experiencing coverage issues. Sectors, including activities such as hill walkers walking on lands with landowners permission, which are facing insurance capacity problems could consider forming a group scheme. Group schemes can provide centralised risk identification and management, along with offering a competitive business proposition with which to attract underwriters. In addition, the collective bargaining power of an affinity group offers distinct advantages for individual businesses.
Finally, it is my expectation that reforms to the common duty of care should improve the insurance environment in these areas more generally.
