Dáil Éireann Debate, Thursday - 18 December 2025
210. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the work being carried out to reduce insurance premiums, including public liability insurance premiums; and if he will make a statement on the matter. [73182/25]
Amharc ar fhreagraWhile neither I as Tánaiste and Minister for Finance, nor the Central Bank, can intervene directly in pricing under EU Solvency II rules, ensuring that consumers have access to affordable insurance cover is a key priority for this Government.
Considerable progress in this area has already been made achieved through the 2020 Action Plan for Insurance Reform, including the introduction of the Personal Injuries Guidelines, legal reforms to rebalance the duty of care, and the establishment of the Office to Promote Competition in the Insurance Market (OPCIM).
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%. However, the last few years has seen the emergence of inflationary pressures. This rise is driven 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 2025 Action Plan for Insurance Reform sets out comprehensive range of targeted measures to further improve affordability, availability, and transparency across the insurance sector. As part of the Action Plan, a transparency code for the insurance industry is under development. The Code will require insurers to provide simple, understandable explanations of how premiums are formed and what broader factors influence pricing. It is my expectation that the Code will be finalised by the end of this year.
The Government also remains committed to addressing the cost of insurance through the work of the Office for the Promotion of Competition in the Insurance Market. In terms of business and commercial insurance, existing providers have also indicated that they are expanding their risk appetite to underserved areas and various sectors are reporting reductions in the rate being charged for liability cover.
I am firmly of the view that securing a more sustainable and competitive market through deepening and widening the supply of insurance will support broader availability and affordability across the market, benefiting consumers and businesses alike.
