Dáil Éireann Debate, Wednesday - 30 March 2022
29. Deputy Niamh Smyth asked the Minister for Finance his plans to implement reforms in view of the increasing cost of insurance premiums; the latest discussions his Department has had on this issue; the bodies or organisations that the discussions have taken place with; and if he will make a statement on the matter. [16928/22]
Amharc ar fhreagraGovernment fully recognises the concerns felt by many consumers and businesses regarding the cost and availability of insurance. However, it should be noted that according to the CSO that in February 2022, the price of motor and home insurance decreased by 11 and 1 per cent respectively year-on-year, despite a 5.6 per cent rise in the general price level over the corresponding period.
Notwithstanding this, the whole-of-Government approach being taken through the Action Plan for Insurance Reform sets out 66 actions which aim to improve both the cost and availability of this key financial service. An Action Plan Implementation report, which was published earlier this month, shows that 80 per cent of these actions have now been delivered. Among the developments so far are the introduction of the new Personal Injury Guidelines in April 2021; the enactment of the Criminal Justice (Perjury and Related Offences) Act 2021; and the establishment of the Insurance Fraud Coordination Office within the Garda Síochána. The Office to Promote Competition in the Insurance Market was also established within the Department of Finance and is chaired by Minister of State Fleming. Its role is to assist in reducing insurance costs by promoting competition in this market.
Since its establishment, the Office has held over 60 meetings with a wide range of key stakeholders, including representative bodies, providers and other civic society groups, particularly those in ‘pinch point’ sectors who are experiencing issues around the accessibility and affordability of insurance, to understand the gaps in the Irish insurance market. The Office has also met with bodies that have a competition remit, such as the Competition and Consumer Protection Commission (CCPC) and the IDA, as well as liaising regularly with industry representative groups such as Insurance Ireland and Brokers Ireland. Recently it also met with the CEOs of the major insurance providers in Ireland, who have confirmed that they are passing on the savings achieved by the new Personal Injury Guidelines, and other reforms, to customers. In this regard, it should be noted that recent data from the Personal Injury Assessment Board (PIAB) show that since the implementation of these new Guidelines, award levels have fallen by an average of 40 per cent, thereby providing stability and certainty to the claims environment.
A key priority now for Government is maintaining momentum in insurance reform with the focus now shifting to implementing the outstanding elements of the Action Plan. Principal actions to be delivered in 2022 include reform of the duty of care legislation and progressing the Personal Injuries Resolution Bill 2022. Overhauling the duty of care is particularly important, as should address the ‘slips, trips and falls’ issue that is prevalent in many high-risk/high-footfall sectors.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government, and that I will continue to work with my colleagues to ensure that these important reforms are implemented.
