Dáil Éireann Debate, Tuesday - 23 September 2025
214. Deputy Ken O'Flynn asked the Minister for Finance the discussions he has had with the Central Bank on ensuring that the benefits of reduced personal injury awards under recent judicial reforms are passed on to policyholders, particularly in Cork, where many SMEs are reporting no such reductions. [49851/25]
View answerAs the Deputy will be aware, neither I as Minister for Finance nor the Central Bank of Ireland can direct the pricing or provision of insurance products. These are commercial decisions for insurers operating under the EU Solvency II framework.
The Government’s reform agenda has delivered substantial changes to reduce claims costs and create the conditions for a more competitive and affordable insurance market. Central to this has been the introduction of the Personal Injuries Guidelines in 2021, which significantly reduced the level of general damages awarded in many cases. The Courts and Civil Law (Miscellaneous Provisions) Act 2023 further strengthened the duty of care, thereby helping to reduce the volume of costly litigation, particularly for “slips, trips and falls” cases that disproportionately affect hospitality and retail businesses.
The Central Bank of Ireland’s National Claims Information Database (NCID) has been an invaluable tool in this regard, providing independent and transparent data on claims costs, settlement channels, and premium trends. The latest NCID report, published in March 2025, on employer and public liability (EL/PL) highlighted that 56 percent of all policies had a premium of €1,000 or less, and 90 per cent of policies had a premium of €5,000 or less. The report also noted that 86 percent of EL/PL policies are ‘packaged’ with cover bought by a wide range of policyholders varying in size and coverage.
Another key focus of the reform agenda was addressing personal injury costs, which historically accounted for about 70% of overall motor insurance claims costs. Thanks to the introduction of the Personal Injuries Guidelines and related reforms, that figure has moved closer to 44%, showing that the Guidelines are having an impact. The most recent NCID reports show that for Injuries Resolution Board is the fastest and most cost-effective method of resolving personal injury claims for private motor claims and employer’s and public liability claims.
While certain reforms have begun to stabilise award levels, delays in litigation and wider inflationary factors continue to impact premiums. The Programme for Government commits to a comprehensive series of actions aimed at enhancing affordability, availability and transparency across the insurance sector. One of the first steps to deliver on these commitments is the new Action Plan for Insurance Reform, which was published by the Government on 24th July. Key measures include faster release of NCID data, enhanced reporting standards, and ongoing engagement with both domestic and international insurers to encourage greater competition in the market.
Minister of State Troy has recently had meetings with the Central Bank, at Deputy Governor level, to discuss a range of issues including insurance reform. In addition, he has also concluded a round of intensive engagement with key stakeholders including Insurance Ireland and the main insurers in the Irish market to set out the Government’s expectation that savings arising from the reform agenda will be reflected via reduced premiums, as well as increased availability of cover.
In conclusion, the Government remains focused on the continued reform of the insurance sector to ensure the market remains fair, more affordable and more competitive, so that SMEs across the country can access affordable cover and grow with greater certainty.
