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Insurance Industry Regulation

Dáil Éireann Debate, Tuesday - 14 July 2020

Tuesday, 14 July 2020

Ceisteanna (287)

Alan Kelly

Ceist:

287. Deputy Alan Kelly asked the Minister for Finance his plans to introduce better regulation of the insurance industry. [14908/20]

Amharc ar fhreagra

Freagraí scríofa

At the outset, it is important to note that I am very much aware of the problems faced by many businesses and consumers in relation to the cost and availability of insurance. I also acknowledge the need to continue with the reform agenda and this is recognised in the Programme for Government's cross-Departmental insurance agenda.

In terms of insurance regulatory reform, I believe much progress has been made through the work of the Cost of Insurance Working Group. Key legislative reforms include:

- The Central Bank (National Claims Information Database) Act 2018 to increase transparency

- Amendments to sections 8 and 14 of the Civil Liability and Courts Act 2004 to make it easier for businesses to challenge fraudulent claims

- The Personal Injuries Amendment Board (Amendment) Act 2019 to strengthen the role of PIAB

- The Non-Life Insurance (Provision of Information) (Renewal of Policy of Insurance) Regulations 2007 (S.I. No. 74 of 2007) with regard to new requirements on insurance renewal

- The Insurance (Amendment) Act 2018 to address issues relating to the liquidation of Setanta Insurance

In terms of reform, a necessary step is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council in December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Judicial Council by 28 October. The aim is that such guidelines can result in the lowering of award levels and a more consistent application of making awards in courts. I would expect the insurance industry to reflect lower award levels in lower premiums.

Another important reform is the Consumer Insurance Contract Act 2019 which is due to be commenced on a phased basis shortly. The commencing of the majority of the provisions of this Act will, amongst other things, place an onus on insurers to handle claims promptly and fairly, and reform other aspects of insurance law such as the practice of warranties and replacing the principle of insurable interest.

However, it is also important to recognise that there is no single policy or legislative measure that will remedy the cost and availability of insurance. There are also many constraints faced by the Government in trying to address matters in this policy space, in particular the fact that Government cannot direct the courts as to the award levels that should be applied or direct insurance companies as to their pricing levels.

In conclusion, I wish to emphasise that insurance reform is a key priority for this Government and as noted above this is reflected in the programme for Government. This is an issue that I, as Minister for Finance, Minister of State Chambers in my Department and other Ministerial colleagues will focus our energies and cooperate on as part of our collective contribution to the Government's commitment to deliver further insurance reforms.

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