Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 65 and 94 together.

I thank Deputies O'Sullivan and Stanton for their very timely and pertinent questions. As they will be aware, insurance reform remains a key priority for this Government and is being delivered via the action plan for insurance reform. As per the most recent action plan implementation report, published in February 2024, the vast bulk of the actions it contains are now either delivered or initiated. The importance that the Government places on this issue is evidenced by the fact that implementation is overseen by a Cabinet committee subgroup on insurance reform, chaired by the Tánaiste. Nevertheless, the Government is aware that certain groups can face difficulty in terms of affordability and availability of certain insurance lines. Accordingly, we continue to prioritise the delivery of the action plan, which will bring benefits to individuals, businesses and households alike.

Since assuming my current role a few weeks ago, I have been in the process of meeting the main insurers in the Irish market to set out the Government's expectation that savings arising from this whole-of-government reform agenda will be reflected via reduced premiums, as well as increased availability of cover. Major international insurers have indicated that they are impressed with the pace and scale of our reforms to date and point to Ireland as a positive example of Government action in this sector. Indeed, we have recently seen several new entrants to the market, with further positive indications in this space. I was particularly delighted to welcome OUTsurance and its creation of 300 jobs in the market just last week.

Last year, one of the key asks of both the insurance industry and reform campaigners was put in place – the rebalancing of the duty of care. The amendments to the Occupiers Liability Act 1995 will deliver major benefits to businesses, sports groups and community and voluntary organisations, in particular. This legislation should help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses, particularly those engaged in activity-based or heavy-footfall areas, where claims associated with slips, trips and falls are more prevalent.

Other key reforms include the introduction of the personal injuries guidelines, with data from the Injuries Resolution Board indicating that the overall average award has fallen by 35% compared with awards made in 2020 under the book of quantum. Another key, complementary action is the Personal Injuries Resolution Board Act 2022, which aims to increase the number of personal injury claims settled through the Injuries Resolution Board, thereby reducing the expense and time associated with personal injuries litigation. Further actions aimed at lowering costs include measures to reduce fraud, and legislation placing perjury on a statutory footing for the first time.

In my engagement with the industry, including its representative body, Insurance Ireland, I have impressed upon it the importance of insurers increasing their risk appetite, especially to provide cover for small and niche sectors that may be experiencing issues with affordability and availability.

The Office to Promote Competition in the Insurance Market, which I chair, is in regular contact with areas that are experiencing insurance issues. It has become clear that the market is responding positively to the Government reform agenda, with insurance now available in previously difficult areas, such as equestrian activities, inflatable hire, ice-skating, sports clubs, play centres and SMEs. The office continues to assist in the connection of various groups experiencing insurance difficulties to relevant stakeholders and will maintain its engagement with IDA Ireland to help leverage the ongoing insurance reforms with the objective of targeting new entrants to the Irish market.

I assure the Deputies of the Government's intention to ensure the ongoing implementation of the action plan for insurance reform will continue to secure the availability and affordability of this key financial service.

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