Pearse Doherty (Donegal, Sinn Fein)
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1. To ask the Minister for Finance the steps he will take to deliver on transparency and affordability in the insurance sector in the context of insurance premiums either remaining too high or increasing, and the pressure this places on households, community organisations and small businesses; and if he will make a statement on the matter. [5417/25]

Pearse Doherty (Donegal, Sinn Fein)
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The question before us relates to the ever-increasing insurance costs that motorists, homeowners, small businesses and sports clubs have to pay. One would think all is good with insurance looking at the programme for Government. Does the Minister accept that there is a fundamental problem with insurance in the State? Does he also accept that premiums are too high and are increasing for many? What is he going to do to bring about a reduction in insurance premiums and ensure affordability? In this new Dáil term, will he stop blocking my Bill that would bring accountability and force insurance companies to show whether they are passing on savings that have been made as a result of reforms introduced in these Houses?

Robert Troy (Longford-Westmeath, Fianna Fail)
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I thank the Deputy for raising this question and for his advocacy in this area over many years. We all have a similar objective, which is to ensure that we have fair insurance premiums for the citizens of the country.

I recognise the concerns felt by many households, community organisations and small businesses across the country about the cost and availability of insurance cover. As the Deputy is aware, neither the Minister for Finance nor the Central Bank of Ireland can intervene in insurance pricing or provision under the EU's Solvency II directive. Notwithstanding this, the programme for Government, Securing Ireland's Future, commits to a range of insurance sector reforms. The publication of a new action plan on insurance reform is a programme for Government commitment. Work is already under way to develop an action plan that will enhance affordability, transparency and competition. This will build on the progress made under the 2020 action plan, which delivered key reforms such as rebalancing the duty of care, reforming the Injuries Resolution Board and introducing new personal injury guidelines. These changes have contributed to a more sustainable market, attracting new competitors like OUTsurance Ireland, Revolut and Fastnet Underwriting and the expansion of coverage to new sectors, including hospitality, SMEs, sports and leisure activities.

Since its establishment in 2020, the Office to Promote Competition in the Insurance Market which I will now chair as part of my ministerial duties, has supported the expansion of insurer risk appetite, creating a more competitive insurance sector. In particular, it helped secure insurance availability in challenging areas such as equestrian activities, the hiring of inflatables and childcare by connecting affected groups with relevant stakeholders.

Since taking up my role, I have commenced a process of engagement with key stakeholders, including Insurance Ireland and major insurers, to ensure reform-driven savings lead to lower premiums and broader coverage.

Transparency in the insurance market remains a key policy focus. The Government's reform agenda also commits to facilitating faster data release from the National Claims Information Database for private motor, employers' liability, public liability and commercial property insurance to enhance market transparency. In this regard, officials will engage with the Central Bank of Ireland to see how to achieve this aim.

Pearse Doherty (Donegal, Sinn Fein)
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The Minister of State is new in the brief but I have heard nothing from him that is new. The one factor that is constant in all of this is that people are being ripped off. Motor insurance has increased by 12% since 2022. I am sure the Minister of State knows all about the increases from having to insure his house. A significant number of people are seeing their insurance premium go up, and not only by €300, €400 or €500. What is happening in the insurance industry is ridiculous.

Insurance brokers argue that it is due to the cost of construction, but the latter has not increased to that level. The profits of this industry are at record highs. They are huge, yet the number of claims and the value of the awards that have been paid through the courts and other bodies are decreasing. What is happening here is the profits of the industry are increasing, the premiums are going up and it is punters - ordinary people - who are suffering. They are looking to the Government for action.

I introduced legislation that would force insurance companies to do what happens in the North and in Britain, which is to give an account of whether they are passing on the savings being made. Why is the Government blocking that legislation? Perhaps as a new Minister of State, Deputy Troy will stop blocking that legislation and allow it to pass.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I share the Deputy's frustration. This is an area in which I invested a lot of time during the lifetime of the previous Government. Many reforms have been introduced. It is regrettable that the level of savings we envisaged for consumers has not transpired. If we look at the CSO consumer price index of December 2024, we can see that motor insurance is 35.5% lower than it was at its peak in July 2016. It is still too high in many cases. Many reforms have been delivered. There is a commitment in the programme for Government regarding an action plan on insurance reform. Work has already commenced in this regard in the context of how we can ensure that the reforms that have been delivered will result in further reductions in premiums and to identify the new reforms that can be initiated to ensure that we have the price transparency for which the Deputy is advocating. We have the same objective, that is, to bring down the cost of insurance.

Pearse Doherty (Donegal, Sinn Fein)
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If we have the same objective, then the Government should allow the legislation that I have drafted to proceed. It passed Second Stage here about three years ago. The Government is stopping that legislation from being passed. All of the major insurance companies here are the same ones that operate in Britain, where they have to account for whether the reduced costs that the changes in the legislation there are supposed to have resulted in have been passed on. If the Minister of State is genuinely sincere in what he says, then let us work on this together.

I would like to hear the Minister of State's view on the Government's position. He will be aware that the Judicial Council has submitted its proposal to the Minister for Justice on an almost 17% increase in the value of awards. That is something which would result in awards going up. What are the Government's views in that regard?

There is no doubt that there have been many changes. I advocated for a large number of them, and we supported all of them. However, one thing we said previously is that we need to get agreement from the insurance industry about what this would mean for premiums. Industry representatives came before the finance committee and told us that if we did not see reductions of 20%, we would need to ask serious questions. There have been no reductions of 20%. Motor insurance has gone up by 12% and the cost of household insurance has gone through the roof. Public liability for sports clubs and businesses never decreased.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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I thank the Deputy.

Pearse Doherty (Donegal, Sinn Fein)
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I am asking the serious questions. I am asking the Minister of State if he is asking serious questions, and if he will stop blocking my legislation.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I am asking the serious questions. I have already initiated meetings with all the insurance companies. I have met one already and I will be meeting the remainder of them in the coming weeks. I will forcefully impress upon them our expectation that they do need to pass on savings, based on the reforms that have been initiated. We want to see a further reduction in consumer premiums. Premiums remain high in many cases, but the Deputy fails to acknowledge that in some instances people who were not getting insurance previously are now getting premiums. New competition has entered the market. Those operating in areas such as equestrian sports, the inflatables industry and children's play areas who did not get insurance in the past are now getting it. Progress has been made, although I accept that it is not enough. That is the reason for the very strong commitment in the programme for Government to continue to build on the progress to ensure that we can bring down the cost of insurance.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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I thank the Minister of State.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I will engage with my officials in the Department and review Deputy Doherty's Bill again. Quite honestly, what I am being told by the officials is that there is duplication and that some of the work involved has already been done. We can most certainly look at it again, however. I am happy to engage with Deputy Doherty to see how we can bring down the cost of insurance because we are all singing from the same hymn sheet in respect of this matter.