Dáil Éireann Debate, Thursday - 7 November 2024
46. Deputy Ruairí Ó Murchú asked the Minister for Finance the short- to medium-term plans by Government to ensure reductions in premiums for insurance products, particularly public liability insurance; and if he will make a statement on the matter. [45385/24]
View answer76. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the insurance industry here remains competitive when compared with insurance costs throughout the European Union notwithstanding any national difference that may apply; the work in hand to reduce the cost of insurance across all sectors; and if he will make a statement on the matter. [46040/24]
View answerI propose to take Questions Nos. 46 and 76 together.
Insurance reform is a priority for this Government, and is being delivered via the Action Plan for Insurance Reform. This whole-of-Government initiative is designed to ensure the affordability and accessibility of this key financial service. The vast bulk of objectives contained within the Action Plan are now complete, and the importance Government places upon it is demonstrated by the fact that it is overseen by a Cabinet Committee Sub-Group on Insurance Reform, chaired by the Tánaiste. The Action Plan for Insurance Reform has included significant achievements since 2020, most notably the rebalancing of the Duty of Care, reforming the Injuries Resolution Board and introducing the new Personal Injury Guidelines. These will benefit all insurance lines including, personal, commercial and liability cover. In addition, in part due to the more attractive operating environment here, new competitors such as OUTsurance, Revolut and Fastnet have entered the motor insurance market, enhancing competition and capacity. This key motor insurance segment best reflects the impact of our domestic reforms. There has been a reduction in premiums of the order of 40 percent since December 2016 in this country, versus a 20 percent increase across the euro area.
Minister of State Neale Richmond has held a number of meetings with the main insurers in the Irish market to set out the Government’s expectation that savings arising from this whole-of-Government reform agenda will be reflected via reduced premiums, as well as increased availability of cover. Indeed, we have recently seen a number of new entrants to the market with some existing incumbents expanding their risk appetite to new areas, including hospitality, SMEs, sports and leisure activities. This represents a vote of confidence in the Government’s reforms and the wider insurance market here. It should be noted that more widely, the global insurance market shows signs of hardening and that Government policy seeks to reform the domestic insurance environment to ensure that Ireland is well-placed to compete for international capital, thereby consolidating the gains made through the Government reform agenda.
In conclusion, I wish to reassure the Deputy that Government policy is firmly targeted on ensuring that the benefits arising from the entire reform programme are realised, for consumers, businesses, and community and voluntary groups across Ireland.
