Dáil Éireann Debate, Thursday - 19 June 2025
67. Deputy Naoise Ó Muirí asked the Minister for Enterprise, Tourism and Employment the engagement he has had with Government colleagues in relation to insurance and reducing the cost of insurance for businesses; and if he will make a statement on the matter. [32939/25]
View answerThe Programme for Government - Securing Ireland’s Future, sets out a range of commitments to build upon the previous Government’s insurance reform programme. The commitments include the establishment of the Cabinet Committee Sub-Group on Insurance Reform which is focused on addressing issues within the sector, particularly regarding costs and availability. The Cabinet Committee Sub-Group is chaired by the Tánaiste and both Minister of State Smyth, and I are members.
A key commitment of the Programme for Government is the development of a new ‘Action Plan for Insurance Reform’ which will focus on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance.
Central to the Action Plan will be the continued strengthening of the Injuries Resolution Board, an Agency of my Department, which resolves personal injury claims in a fair, prompt and transparent manner without the need for unnecessary litigation.
Since establishment in 2004 the Injuries Resolution Board, has dealt with over 500,000 personal injury claim applications and made nearly 200,000 assessments of compensation. This has led to direct savings of over €1.26 billion in avoided legal fees through its assessment service where these awards have been accepted by both parties.
In 2023 alone €75 million was saved through the work of the Injuries Resolution Board from the avoided legal costs associated with litigation, with a similar draft figure of €76 million in 2024.
The Personal Injury Guidelines, first introduced in April 2021 were reviewed in 2024 by the Judicial Council after a period of three years, in line with legislation. This led to the publication of new draft Personal Injuries Guidelines in December 2024, which introduced a new methodology for the calculation of awards and increased personal injury awards by 16.7%.
The amendments proposed to the Personal Injuries Guidelines represent a significant challenge for Ireland’s competitiveness, and I have represented my concerns with Government colleagues on these issues in recent months.
• On 19th March 2025, I met with the Ministers for Finance and Justice for a discussion regarding the Personal Injuries Guidelines.
• On 10th April 2025, I attended the Cabinet Committee on Economy, Trade and Competitiveness where the agenda featured an item on re-establishing the Cabinet Committee Sub-Group on Insurance Reform.
• On 6th May 2025, I met with the Minister for Justice, the CEO of the Injuries Resolution Board and the Attorney General for a discussion on the potential impact of the revised Personal Injuries Guidelines for the Injuries Resolution Board and the wider economy.
The Cabinet Committee Subgroup on Insurance Reform is scheduled to next meet on 9th July 2025.
I will continue to advocate on behalf of business to drive the insurance reform agenda working alongside my colleagues across Government taking account of the wider issue of competitiveness and impacts on our economy.
