Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Government is committed to bringing about meaningful insurance reform, as is reflected in the programme for Government. The action plan for insurance reform contains 66 actions across several departmental policy areas. Its implementation is overseen by a Cabinet subgroup on insurance reform, which met last week. Achievements to date include the adoption of personal injury guidelines by the Judicial Council, which has significantly reduced many common injury award levels, and the creation within my Department of an office to promote competition in the insurance market, headed by the Minister of State, Deputy Fleming.

The Deputy will be aware that last week the Minister for Justice introduced amendments to the Family Leave and Miscellaneous Provisions Bill to implement these guidelines. As such, they will be in place ahead of schedule and many claims should shortly begin to be assessed by both the Personal Injuries Assessment Board, PIAB, and the Judiciary using these rather than the book of quantum. This should mean more consistency and bring more certainty to claims for insurers and thereby underscore the benefits of using PIAB. This in turn should reduce the cost of claims, particularly legal fees. In addition, I hope the improved insurance operating environment will help to attract new entrants into the market, thereby increasing competition.

I reiterate the strong expectation of the Government that insurers responding to this key reform in a positive and generous manner need to do this by passing on savings to consumers and businesses. The insurance industry has previously committed to reduce premiums in line with lower award levels and I and the Government will hold it to account on this pledge. The Minister of State, Deputy Fleming, is meeting individual insurance companies in relation to this and we will track our progress through the data set from the Central Bank on public liability and employer insurance.

See this speech in context