Dáil Éireann Debate, Tuesday - 17 February 2026
481. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance if he will address concerns raised in correspondence regarding motor insurance premiums (details supplied); and if he will make a statement on the matter. [12350/26]
Amharc ar fhreagraAs the Deputy is aware, neither I, as Tánaiste and Minister for Finance, nor the Central Bank of Ireland can intervene in insurance pricing or provision under the EU's Solvency II directive. The Government remains fully committed to the continued reform of the insurance sector, to enhance affordability and availability of insurance for all consumers.
A key focus of the insurance reform agenda has been reducing personal injury costs, which historically accounted for around 70 per cent of overall motor insurance claims costs. Since the introduction of the Personal Injuries Guidelines and related measures, that figure has now moved closer to a 50/50 split between settled injury cost (46%) and settled damage costs (54%) in 2024. This significant shift has helped shield Ireland from the full impact of global inflationary pressures in the motor insurance sector.
Inflationary pressures, which have emerged in recent years, are driven primarily by external factors, including more technologically advanced vehicles, international supply chain disruptions, and increasing labour costs in the repair sector. All of which have contributed to higher repair costs, in turn placing upward pressure on premiums. My officials engage regularly with Insurance Ireland, which advises that premiums are calculated using a range of rating factors, including where a vehicle is stored, the age and experience of the driver, and other risk-related considerations.
Nevertheless, the Government’s Action Plan for Insurance Reform 2025-2029 sets out a range of targeted measures to improve affordability, availability, and transparency for consumers. One of the priority actions is the development of a Transparency Code for the insurance industry. My Department, working with the Central Bank of Ireland and the insurance sector, is in the process of finalising the Code. When implemented, the Code will help consumers better understand the key factors influencing their motor premiums, support more informed decision making, and strengthen trust in pricing practices. It will also enhance transparency around rating factors, fees, discounts, and the general reasons an application may be declined. By promoting more consistent communication, the Code will support the Government’s broader goal of a transparent, competitive, and consumer-focused insurance sector.
The Government is firmly committed to addressing the cost of insurance through implementing the reforms set out in the Programme for Government and Action Plan for Insurance Reform to ensure a fairer, more sustainable and competitive insurance market which delivers tangible improvements in cost, choice, and access for all consumers.
