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Insurance Industry

Dáil Éireann Debate, Wednesday - 15 September 2021

Wednesday, 15 September 2021

Ceisteanna (72)

James Lawless

Ceist:

72. Deputy James Lawless asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on the actions his Department is taking under the Action Plan for Insurance Reform. [43817/21]

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Freagraí scríofa

Government wants a competitive, stable and consumer-friendly insurance environment. The Sub-Group on Insurance Reform, under the Cabinet Committee on Economic Recovery & Investment, which the Tánaiste chairs was established to oversee and drive forward insurance reform.  The Action Plan for Insurance Reform is one of the most important programmes of reform that this Government will undertake. Implementation of the Plan is on track with the first six-monthly Implementation Report published in July 2021, showing that work is progressing well to implement the Action Plan, with 34 of the 66 actions completed.

Actions for my own Department under the Action Plan are set out as follows:

- Enhancing the role of the Personal Injuries Assessment Board

As Minister of State for Trade Promotion, Digital and Company Regulation, I have met regularly with PIAB and a range of representative bodies to assess the role of PIAB and develop proposals to enhance and reform the agency. I have undertaken a public consultation seeking views on the matter from all interested parties. The Department has considered the 240 responses received and, informed by the public consultation, Heads of a Bill have been developed in consultation with PIAB, which I am considering.

As set out in the Plan the new Personal Injuries Guidelines came into effect on the 24th April. These Guidelines apply to all cases assessed by PIAB from that date. Preliminary PIAB data indicates that since the implementation of the Guidelines, the average PIAB award has decreased by approximately 50%. Furthermore, about 80% of PIAB awards are now €15,000 or less, compared to 30% in 2020. The new Guidelines clearly represent a shift in the manner in which general damages are awarded in our country and in the level of those damages and should exert downward pressure on insurance premiums.  

In addition, the Minister for Justice and I, published the Garda Síochána (Compensation) Bill 2021 in April 2021. This Bill will bring Garda compensation claims within the PIAB process. This will benefit both claimants, in terms of quicker resolution of claims with an objective assessment of quantum, and the State as the respondent, in terms of lower legal and administrative costs.

- Strengthening the enforcement powers of the Competition and Consumer Protection Commission (CCPC)

On the 22nd December 2020 Government approved the General Scheme of the Competition (Amendment) Bill. This Bill represents a step change in competition enforcement for Ireland and will give the CCPC more effective enforcement powers to punish anti-competitive conduct. The Bill has undergone pre-legislative scrutiny by the Joint Oireachtas Committee on Enterprise, Trade and Employment and is currently undergoing drafting with the Office of Parliamentary Counsel.

- Working together with the Department of Finance to establish an office within government to encourage greater competition in the insurance market

An Office to Promote Competition in the Insurance Market has been established within the Department of Finance, chaired by Minister of State Fleming and supported by my Department. The work of the Office includes engaging with sectoral stakeholders to understand gaps in the insurance market, with a view to expanding the risk appetite of existing insurers. It is also involved in exploring opportunities for new entrants in order to increase the availability of insurance. This Office provides a more coordinated Government policy approach to increase competition in the insurance sector.

The full implementation of the Action Plan for Insurance Reform will help to ensure that we have an insurance system which is both affordable and reliable and underpins a vibrant economy.

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