Dáil Éireann Debate, Thursday - 7 November 2024
47. Deputy Ruairí Ó Murchú asked the Minister for Finance to provide an update on the work of the Office for the Promotion of Competition in the Insurance Market, particularly in relation to reducing the cost of public liability insurance; and if he will make a statement on the matter. [45386/24]
Amharc ar fhreagraInsurance reform is a key priority for this Government and is being delivered via the Action Plan for Insurance Reform. The latest Implementation Report demonstrates that significant progress has been made, with 95 percent of the actions contained in the Action Plan now either delivered or initiated.
The establishment of the Office to Promote Competition in the Insurance Market is a Programme for Government commitment. Chaired by Minister of State Richmond, its aims are to help expand the risk appetite of existing insurers and explore opportunities for new market entrants. Since its establishment, the Office has played a role in helping to encourage the availability of insurance cover including for various “pinch-point” sectors including equestrian activities, inflatable hire, and childcare. Through leveraging the Government's insurance reform agenda, the Office has successfully helped facilitate the availability of insurance in previously challenging areas, in turn contributing to a more competitive market.
This collaborative approach involves connecting groups facing insurance challenges with relevant stakeholders and separately engaging with IDA Ireland to help attract new insurers to the Irish market. We have seen encouraging signs of heightened competition in the market recently, with new entrants OUTsurance, Revolut and Fastnet offering further choice and competition to consumers.
In addition, Minister Richmond has chaired a number of insurance roundtables with sectoral stakeholders, and has received positive feedback on increasing international interest in the Irish market. The Deputy will be interested to know that some participants at the recent Brokers roundtable noted a decline in insurance rates and an increase in available capacity. This is a sign that the Government’s reform agenda is having the desired effect. In tandem with this, the Office has observed an increase in Managing General Agent activity within the market, which points towards a growing specialisation and a competitive environment for niche areas which had traditionally sought cover from overseas.
As well as the above, Minister Richmond has met with the main insurers in the State on a number of occasions in his capacity as Chair of the Office and impressed upon them the need to pass on savings achieved through the reform agenda in the form of reduced premiums and expanded risk appetite. At these meetings, he has received positive feedback on the expansion of product lines, improving risk appetite, the implementation of the Government reform agenda, and the regulatory environment.
In conclusion, I wish to assure the Deputy of my intention to continue to work closely with my Government colleagues to ensure further implementation of the Action Plan which, in tandem with the work of the Office to Promote Competition, should have a positive impact on the affordability and availability of insurance for all consumers.
