Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

Seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for the Government. It is my intention, along with the Minister, Deputy Donohoe, to work to ensure that the commitments outlined in the programme for Government are progressed in accordance with the Action Plan for Insurance Reform. One of the key achievements of the action plan was the adoption of the new personal injuries' guidelines in April this year, which was approximately seven months ahead of the expected date. I thank all of those involved for working to bring the guidelines forward as early as possible. They provide much greater certainty regarding award levels, in addition to reducing awards for many common injuries, and should encourage greater use of the Personal Injuries Assessment Board, PIAB, to settle claims. We need to make sure that the guidelines achieve these key aims and we will monitor their implementation as part of the action plan. In that regard, it will be important that insurers respect the guidelines in direct settlements, so they do not risk undermining them from the outset.

The Deputy should rest assured that both I and the Minister have been holding the insurance industry to account in respect of commitments that it has made with regard to lowering insurance premiums arising from reduced personal injuries guidelines award levels. I have held meetings with the main insurance companies in the market. These engagements were positive, with insurers indicating that consistent implementation of the guidelines should result in lower premiums. I will meet with them again soon to review their response to the guidelines and other insurance reforms.

Separately, I note the Central Statistics Office's most recent consumer price index, CPI, data show continuing decreases in the price of motor insurance. In that regard, motor insurance prices are now 36% lower than at the peak in 2016. As such, I believe that we need to look at the price reductions in the context of the Government's overall reform strategy, as important reforms to the duty of care and reform of the PIAB will further help to improve the affordability and availability of insurance for all customers. That is now a key priority in the period ahead. I assure the Deputy that work remains ongoing across the Government to deliver these elements of the action plan.

See this speech in context