Pearse Doherty (Donegal, Sinn Fein)
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2. To ask the Minister for Finance the steps he is taking to address the situation where insurance companies for multiple consecutive years are recording profit margins two or three times the industry average; and if he will make a statement on the matter. [28804/25]

Pearse Doherty (Donegal, Sinn Fein)
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Maybe the Minister's response to this question will not be as pathetic because his words will ring hollow to the children who are being ripped apart in Gaza. The bombs and bullets are funded because Israeli bonds are being facilitated through the Irish Central Bank and he is the Minister of Finance who can actually stop that. It is disgraceful.

I am asking the Minister to explain the steps he is taking to address the situation where insurance companies here are recording profits that are multiples of our European competitors.

Paschal Donohoe (Dublin Central, Fine Gael)
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I want to call out the behaviour of Deputy Doherty. His language and the way he is attempting to treat this issue, which is so serious, is thuggish. His behaviour is thuggish. Yesterday, the leader of Sinn Féin referred to harassing the Government on this issue.

Pearse Doherty (Donegal, Sinn Fein)
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It was the Taoiseach who referred to that.

Paschal Donohoe (Dublin Central, Fine Gael)
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I have come into House to attempt to deal----

Pearse Doherty (Donegal, Sinn Fein)
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As a point of order, the Minister is making accusations against somebody who cannot defend themselves. It was the Taoiseach who made that accusation and I will not accept the Minister calling me a thug or my behaviour thuggish while he protects and defends the situation where Israeli war bonds are here. I will not stand and allow the Minister to suggest that I am thuggish in that manner because we know what this is all about. This is far too important and I will not allow him to characterise my behaviour or standing up for what I believe in that way.

Mairéad Farrell (Galway West, Sinn Fein)
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I will give the Minister's time back.

Paschal Donohoe (Dublin Central, Fine Gael)
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I can stand up for what I believe but I can do so in a way that is respectful of the views of others. I can make the case for what I believe in without constantly interrupting and demeaning the good intentions of others.

Brian Brennan (Wicklow-Wexford, Fine Gael)
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Hear, hear.

Paschal Donohoe (Dublin Central, Fine Gael)
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For the record, I used the words of Deputy McDonald yesterday. That was the word she used. Despite everything, I still try to respect Deputy Doherty's good intentions in spite of the many reasons I should not. I simply ask the Deputy to do the same of me.

In relation to the very important matter he raises here, I recognise the concerns on profitability levels in certain segments of the market. Structural reform and ensuring the long-term affordability and sustainability of the Irish insurance market, while ensuring a viable insurance sector, are priorities for this Government.

The insurance market’s profitability in 2022 and 2023 was supported by significant reserve releases following the Covid-19 pandemic. After a number of years of losses, the National Claims Information Database data shows that the insurance market was profitable again in 2023. For liability insurance, the operating profit was 13% in 2023, and the long-term average operating profit was 2.1% between 2009-2023. The motor insurance market had an 8% profit in 2023, with a long-term average profit of approximately 5 % between 2009-2023.

Globally, 2023 was characterised as a hard market with higher premiums, stricter underwriting conditions and higher reinsurance costs. In contrast, industry insights suggest that 2024 showed a softening market with increasing competition and falling rates which have translated into lower premia in some market segments, but further work is needed.

That is why the Government is developing a new action plan for insurance reform that will prioritise further competition in the market. It will include further work, including with insurers, to enhance transparency and promote affordability across all types of insurance. My Department has concluded the public consultation and is reviewing the various submissions.

Pearse Doherty (Donegal, Sinn Fein)
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The question I continue to raise relates to when the Government is going to deal with the issue of the costs that people are paying for motor insurance and home insurance and that sports groups, organisations, community groups and small businesses the length and breadth of this State are paying for public liability insurance. The profits being made by the industry are eye-watering. When representatives of the industry came before the finance committee, they told us they would target a 4% to 5% increase; not 4% to 5% over the past ten to 20 years but because that is the industry norm. Insurance premiums have increased and we have seen double-digit profit margins for the past three years. The margins they are making are two and three times the European average. I have supported all the reforms that have been introduced in this House. However, I argued that such reforms cannot be about boosting the profits of the industry; they have to be about putting money back into consumers' pockets. That is where the Government is failing over and over again.

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for raising that issue and acknowledging the scale of the reforms the Government has brought in, and his own role in that regard, which I acknowledge. I also acknowledge the Consumer Insurance Contracts Act 2019, which was the subject of a motion the Deputy brought forward. Part of that Act has not yet been commenced, but most of it has. There are various measures the Government brought in: the personal injuries guidelines; the reform of the Personal Injuries Resolution Board Act 2022; the banning of price walking; the establishment of an office to promote competition; the publication by the Central Bank of its national claims information database; the work that has been done by the CCPC; the establishment of an insurance fraud co-ordination office; and the work done by the Garda, Insurance Ireland and the Alliance for Insurance Reform. All that work was not done to create higher levels of profitability. It was done to create a more competitive sector for those who depend upon it. I want to see that translated into lower prices.

Pearse Doherty (Donegal, Sinn Fein)
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The problem here - and this is not the first time I have highlighted it - is that I, on behalf of Sinn Féin and the Alliance for Insurance Reform, said we needed commitments from the insurance industry that if reforms were introduced, then premiums needed to be reduced. The Minister's former party leader, Leo Varadkar, gave headlines to the newspapers six or seven years ago to the effect that he was giving the insurance industry six months or else. What did he mean by that? Just taking the past 12 months, insurance premiums for motorists have gone up a whopping 9%. Motor insurance is at the highest level it has been in five years. It is more than double the European average. What is driving motor insurance premiums up? There is only one thing: it is profit and corporate greed. The industry is able to do this because the Government is not going to do anything it, despite the words of the former Taoiseach six or seven years ago. There is no stick when it comes to this issue. That is why the insurance companies are taking a hand not only at the Government but at their customers. What is happening is not right. What measures does the Minister plans to take to ensure that these reforms will result in meaningful reductions for consumers as opposed to whopping profits for the industry?

Paschal Donohoe (Dublin Central, Fine Gael)
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With regard to motor insurance, it is the case that the figures in the year to date are up 9.7%. If you look at where it was for the month of April, they were up 0.2%. The figures are now 34.4% lower than they were at their peak in 2016. If you look at motor insurance, prices are now down by 2.2% since the implementation of the personal injuries guidelines and down 5.1% since the Cabinet sub-committee on insurance reform was set up. We have seen some developments there.

The Deputy is at it again. He is inferring that the Government is doing nothing, when I have laid out what the Government is doing. What we will be doing now is that I and the Minister of State, Deputy Troy, will be working on the new further action plan for reform. We will also be engaging with the insurance sector and looking at what further options we need to consider. We have done our bit, and so has the Oireachtas. We need to see better value for the consumer as a result of that.