Tony McCormack (Offaly, Fianna Fail)
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98. To ask the Minister for Finance for an update on the programme for Government commitments on insurance reform under the remit of his Department; and if he will make a statement on the matter. [38994/25]

Tony McCormack (Offaly, Fianna Fail)
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I ask for an update on the programme for Government commitments on insurance reform under the remit of the Department of Finance.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I thank Deputy McCormack for raising this issue. Insurance reform, including increasing the affordability and accessibility of insurance, remains a key priority for the Government as outlined in the programme for Government. Many reforms have been introduced, yet it is regrettable that the level of savings and the supply of cover for consumers and businesses has been subsequently eroded due to the rise of international inflation and consequential damage costs.

A key focus for me in my role as Minister of State with special responsibility in this area is the development of a new action plan for insurance reform. The new action plan will build on the significant achievements of the 2020 action plan, including reforms to the duty of care, enhancements to the Injuries Resolution Board and the implementation of new personal injuries guidelines. These reforms have contributed to a more stable and competitive insurance market, helping to attract new providers such as OUTsurance Ireland, Revolut and Fastnet Underwriting.

As part of the development of this action plan, I launched a wide-ranging public consultation that received over 70 detailed submissions from a broad spectrum of stakeholders. The action plan will advance reform under six key themes: transparency and affordability, competitiveness and availability, legal reform, fraud, climate protection, and innovation and skills. There are also a number of priority actions focused on areas where the greatest impact on cost and availability can be achieved.

The Government has shown its firm commitment to insurance reform by re-establishing the subgroup on insurance reform within the Cabinet committee on the economy, trade and competitiveness, chaired by the Tánaiste. The subgroup will meet on a regular basis to drive this action plan forward, taking a whole-of-government approach. I am pleased to say that the Cabinet subgroup’s first meeting on 9 July considered the draft action plan and it is the intention that the final action plan will be agreed at Government level. After that, I would expect to be in a position to publish the new plan.

Tony McCormack (Offaly, Fianna Fail)
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I thank the Minister of State for the update. I was speaking with business owners whose premiums have gone up exponentially over the last four years, even without any claims. It is hard for them to see the impact of the reforms on the ground. Could the Minister of State outline how his Department is working to make sure reforms generally bring premiums back to sustainable levels for businesses like that?

Robert Troy (Longford-Westmeath, Fianna Fail)
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The Deputy is right. Despite the reforms introduced, premiums are too high and are higher than where we would like them to be. International inflation can account for some of those reasons but there are two other reasons: legal fees are too high, and insurance companies, in certain years, are making profits that are too high.

With regard to the legal fees, the Injuries Resolution Board is a tried and tested mechanism by which people can submit their claims and have their compensation paid out in a timely and cost-effective manner. We need more people with legitimate claims going through the resolution board, ensuring that the legal fees are radically reduced.

On the high profits of insurance companies, we need greater transparency with regard to how premiums are set to ensure that insurance companies' feet are held to the coals and they are passing on the savings being delivered by the reforms introduced by the previous Government.

Tony McCormack (Offaly, Fianna Fail)
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I appreciate the Minister of State's answer. One business owner even told me he is considering not paying insurance at all. Smaller businesses like landscape gardeners, plumbers and electricians are in the same position. This is all because they want to keep the doors open. That is how desperate some SMEs feel. How can we reassure these small employers that there is a plan to make insurance both fair and accessible so they are not forced to consider such risks?

Robert Troy (Longford-Westmeath, Fianna Fail)
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I compliment the Deputy for the work he is doing and his engagement with the SME sector as a spokesperson on SMEs for the party. When I met RGDATA with the Deputy last week, we listened jointly to the challenges facing the industry, which are not just about insurance but the whole competitiveness area. The Minister for enterprise is bringing forward an action plan on competitiveness. One of the key decisions taken by the Government was not to impose the recommended price increase with regard to personal injuries awards and to park that decision.

I ask SMEs to look at the track record of the Government with regard to the action plan the last time. It did deliver results. The actions were meaningful and we did see premiums decrease at a rate unlike across the water in the UK or across the EU. They have started to increase again and that is why we are determined that the new action plan will build on the progress of the past and we will hopefully see premiums reduced further.