At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
Nevertheless, this Government is aware that certain groups are currently facing difficulty in terms of affordability and availability of insurance, and has therefore continued to prioritise the delivery of the Action Plan for Insurance Reform. The latest implementation report indicates that significant progress has been achieved, with the vast majority of actions now completed, and the remainder ongoing.
Key reforms include the introduction of the Personal Injuries Guidelines, with data from the Personal Injuries Assessment Board (PIAB) indicating that the overall average award has fallen by 38 per cent compared to awards made in 2020 under the Book of Quantum. Another key, complementary action is the Personal Injuries Resolution Board Act 2022, which aims to increase the number of personal injury claims settled through the PIAB, thereby reducing the expense and time associated with personal injuries litigation. Further reforms aimed at lowering costs include measures to reduce fraud, and placing perjury on a statutory footing for the first time.
In my engagement with industry, including its representative body Insurance Ireland, I have clearly impressed upon them Governments expectation that insurers increase their risk appetite, especially to provide cover for small, niche sectors experiencing affordability and availability issues. Furthermore, Minister of State Carroll MacNeill in her meetings with the CEOs of the main insurers in the Irish market has reiterated this message and in particular the need to pass-on the savings arising from the Government reform programme.
In addition, the Office to Promote Competition in the Insurance Market is working closely with IDA Ireland to help leverage the ongoing reforms, with the objective of targeting new entrants to the Irish market, or persuading existing incumbents to expand their risk appetite.
In terms of next steps, rebalancing the “common Duty of Care” legislation (the Occupiers’ Liability Act 1995) is now a priority for completion. This legislation would help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses, particularly those engaged in high-risk/heavy-footfall areas, where claims associated with ‘slips, trips and falls’ are more prevalent.
I note the Deputy’s concerns regarding potential “micro-sectoring” by insurers resulting in certain groups having difficulty in accessing insurance cover. While the increased use of data analytics and technology by insurers brings risk and stability benefits, we must also consider the possibility that this can create issues around availability and cost of cover. Officials in the Department of Finance continue to monitor developments in this regard.
In conclusion, I wish to assure the Deputy that seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. For my part, I am committed to working with colleagues to complete outstanding reforms, and monitoring their impact, with a view to achieving an improved insurance environment for all policyholders, including in niche sectors.
