Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I thank the Deputy for raising this really important issue. It is one which is very much coming up on the doorsteps and has been for quite some time. Insurance costs in Ireland are very high. This impacts on drivers, patients or potential patients with health insurance, business people, farmers, community organisations and in particular, when it comes to motor insurance, people who have returned to Ireland from abroad who find real difficulties in getting insurance.

We all know that the Government does not set premiums. It is a private market and no matter what, it will always be the case that the amount coming in in premiums must roughly match the amount paid out in claims. That is the essential equation which is behind insurance, with the difference being the insurance companies profits.

This is a priority for Government. The Minister of State in the Department of Finance, Deputy D'Arcy, has a special role in this issue to bring down the cost of insurance for Irish people, citizens and businesses. We have seen some progress. Motor insurance is down about 20% from its peak in 2016. It needs to fall further. Health insurance which had been increasing every year has stabilised for the past two or three years, largely as a result of legislation we brought in on lifetime community rating which has succeeded in stopping the increases in health insurance prior to that. This year we have already passed about three new laws around insurance. However, it will take some time for the effects of those laws to be seen in the premiums charged to people and businesses. The next step is the Judicial Council Bill which is working its way through the Houses. It will enable the Judiciary to come up with new advice and guidelines on appropriate levels of compensation payable to people if they have been injured. Getting that through by the summer recess is the next important step, as well as having the judicial council set up and having it draw up guidelines ideally by the end of the year. As with all the reforms, and was the case with lifetime community rating in health insurance, it may be a year or two after the law is enacted before its results are evident in premiums moderating or falling.

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