Dáil Éireann Debate, Tuesday - 21 April 2026
312. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the steps he is taking to address the situation where claims cost per policy for motor insurance are falling yet premiums continue to rise; and if he will make a statement on the matter. [28773/26]
View answerAs the Deputy will be aware, neither I as Tánaiste and Minister for Finance, nor the Central Bank, have the power to compel insurers to provide particular types of insurance or to provide it at a particular price. This is reinforced by the European framework for insurance (Solvency II Directive).
Ireland’s reform programme has helped shield consumers from sharper premium increases experienced elsewhere. Between 2016 and 2024, motor insurance premiums increased by approximately 65 per cent in the UK and by around 20 per cent across the Eurozone. In contrast, Ireland experienced a proportional reduction of approximately 34 per cent over the same period.
A key focus of the reform agenda was addressing personal injury costs, which historically accounted for around 70% of overall motor insurance claims costs. Thanks to the introduction of the Personal Injuries Guidelines and related reforms, that figure has now moved to 46%. This significant shift has helped shield Ireland from the full impact of global inflationary pressures in the motor insurance sector.
However, the last few years has seen the emergence of inflationary pressures impacting damage claims. The National Claims Information Database (NCID) Private Motor Insurance Report 7, published in October 2025 highlighted that the expected cost of claims per policy increased by 3% in 2024. This increase is driven by damage claims, which are impacted by a combination of external factors, including increased vehicle technology, supply chain disruptions, and a tightening labour market; all of which have raised the cost of repairs.
The Action Plan for Insurance Reform 2025–2029 sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved. There are several priority actions, including actions that place a key focus on the Office to Promote Competition in the Insurance Market (OPCIM) and enhancing market competitiveness by proactively engaging with the insurance market to encourage new entrants into the Irish insurance market, which will further boost supply and enhance the availability and affordability of insurance. The new Motor Insurance Transparency Code, launched on 2 March 2026 will also enhance transparency, and provide greater understanding in how motor insurance premiums are communicated to consumers.
The Government remains firmly committed to addressing insurance costs through the implementation of the reforms set out in the Programme for Government and the Action Plan for Insurance Reform. These measures aim to support the development of a fairer and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.
