Dáil Éireann Debate, Tuesday - 26 May 2026
205. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance if he will provide an update on the action plan on insurance reform, including actions to reduce average motor insurance costs; and if he will make a statement on the matter. [39884/26]
Amharc ar fhreagraThe Government is advancing the actions in the Action Plan for Insurance Reform 2025-2029 to further reform the insurance sector in Ireland, with a view to ensuring greater transparency and improving the affordability and accessibility of insurance for all consumers, including motorists.
Significant reform was implemented under the 2020 Action Plan for Insurance Reform which 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.
Nevertheless, the Government remains firmly committed to delivering measures to reduce insurance costs affecting motorists. This commitment is being progressed through the Action Plan for Insurance Reform 2025–2029. The Action Plan sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved. A Motor Insurance Transparency Code was launched on 2 March 2026, designed to enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers. Furthermore, work is ongoing in the Office to Promote Competition in the Insurance Market (OPCIM) to encourage new entrants into the Irish insurance market, which will further boost supply and enhance the availability and affordability of insurance.
The Action Plan for Insurance Reform 2025–2029 will support the development of a fairer, more sustainable, and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.
