Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

I move:

That Dáil Éireann: notes that:

— the Government have failed to end the rip-off when it comes to insurance costs;

— the increasing cost of motor insurance is putting many people under severe pressure in a cost-of-living crisis;

— the cost of motor insurance has increased at more than four times the general rate of inflation;

— people are now facing health insurance costs of roughly €2,000 every year, affecting almost 2.5 million people in this State, many of whom were already struggling to afford to keep their coverage;

— there has been a substantial decrease in median award value among motor, employer and public liability claims; and

— despite a drop in claim related costs, a survey of businesses and civil society organisations, conducted by the Alliance for Insurance Reform, found that the vast majority reported premium increases in the past two years and faced higher excesses, new exclusions, or both, meaning they are paying more for less cover;

regrets that:

— the Government have failed to get insurance costs under control;

— customers have not benefited in the form of reduced premiums as a result of reduced claims-related costs for insurance companies in the way they should;

— the Government has taken no meaningful action, despite extensive evidence that previous reforms have not been passed on; and

— insurance companies in this State are making profits far in excess of industry norms, at the expense of workers, families, businesses and community groups; and

calls on the Government to:

— address the disproportionate profits being made in the insurance sector;

— stand up to insurance companies to ensure fair and stable insurance prices;

— recognise the role that high insurance costs play in driving the cost-of-living crisis, both directly through higher premiums and indirectly by driving up the costs of businesses, public bodies, and civil society organisations;

— progress and enact the Judicial Council (Amendment) Bill 2021, to ensure the benefits of reforms are passed onto customers in the form of lower premiums, rather than captured as higher profits for insurance companies;

— ensure meaningful Oireachtas oversight in relation to Personal Injury Guidelines, to ensure adequate scrutiny prior to Government decisions; and

— confirm that any future policy change in relation to insurance must be conditional on benefits of both new and past reforms being passed on to customers through lower premiums.

Is é sprioc an rúin seo ná iarracht iachall a chur ar an Rialtas chun gníomhú faoi dheireadh agus stop a chur leis an sailleadh árachais. Tá daoine á lomadh agus tá gnólachtaí faoi bhrú bocht. Tá clubanna spóirt, grúpaí pobail – ní ort iad a lua - uilig i gcruachás maidir le hárachas ag dul in airde. Go dtí go bhfuil rialtas againn a dhéanann fá dtaobh de seo, ní thiocfaidh deireadh leis an sailleadh árachais. Ní mór don Rialtas seasamh suas do na comhlachtaí árachais agus iachall a chur orthu an t-airgead atá á shábháil acu a roinnt lena gcustaiméirí.

The purpose of this motion is simple. It is to force the Government to finally act and put an end to the insurance rip-off. Right now, people are being fleeced. Families are under pressure. Businesses are being squeezed. Sports clubs, community clubs, charities, you name it - they are all being hit hard. Until this Government decides to stand up and take action, the rip-off will continue. Insurance companies must be forced to pass on the savings they are making to their customers. Instead, every reform so far has lined their pockets and boosted their profits while ordinary people pay more and more. Car insurance is up. Home insurance is up. Health insurance is up.

On top of all this, we have a cost-of-living crisis. Food prices are soaring. Energy bills and rents are climbing and people face another blow when they renew their insurance. Last year, the cost of car insurance rose at four times the rate of inflation. It is now at its highest level in five years and almost double the European average. Meanwhile, motor insurers are raking in bumper profits made off the backs of ordinary people just trying to get to work or bring their children to school. What has the Government done? Nothing. There has been no pushback, no outrage and no action. Home insurance premiums are getting higher and higher. Pushed by unaffordable house prices, people are paying far more or being left underinsured. One Government failure stacks up on top of another.

Health insurance costs are almost €2,000 now and even higher for people over the age of 65. This affects many people across the State who are already struggling to keep their cover. The cost of public and employer liability insurance is through the roof, as the Minister will be aware, despite the fact that the cost of claims is actually coming down. What does this do? It drives up the cost of doing business or running any type of community organisation or sports group and it feeds through and drives up costs for everyone. The truth is simple. Insurance companies are simply pocketing the benefits from reforms brought in to reduce the cost of insurance. Nowhere near the full benefit or even a fraction of it has been passed on to consumers. Most of the time, premiums have gone up, while the Government seems unfazed or unbothered about it.

We have seen a Government that has sat back and allowed insurance companies to make eye-watering profits that are completely out of step with industry norms. We have seen, in certain sectors of the insurance market, insurance companies making margins of 17%. That is scandalous in anyone's book. Normal profits of the insurance industry are in the low single digits. That is what we see in other countries that have a functioning insurance system - not here; not in this State; not under this Government. Here, there is free rein for insurance companies and they are told to take as large a slice as they want.

I sat on the finance committee as insurance companies came in one after another and said that if they got the reforms they needed, they would target a profit margin of 5%. What do we see today? Five or six years later under Fianna Fáil and Fine Gael, we are seeing insurance companies record double and triple that as they pocket the savings and give the two fingers to the Government and the public. Not only that, but they want more and the truth is there is still scope and we do need some reform.

Our legal system is too slow and too expensive. The Injuries Resolution Board could play a stronger role and these Houses need to have greater oversight of the personal injury guidelines. However, none of this will matter unless profiteering is tackled head-on. All the reforms in the world are pointless if insurers are free to pocket the gains and charge customers more and more. That is why I am calling on the Government to pass my legislation, which it is blocking. It would force insurers to show exactly how they are passing on savings to customers euro for euro. The truth is that the Government has been taken for a ride by the insurance industry and now it is time to stop standing by the sidelines, stand up for people, businesses and communities and end the insurance rip-off once and for all.

Joanna Byrne (Louth, Sinn Fein)
Link to this: Individually | In context

Insurance costs in this State defy belief. The reasons given by insurers for costs being so high defy logic and are beyond rational realisation. However, the Government will not tackle them and their obvious profiteering despite mountains of evidence that should demand action from any government, anywhere, that really has the best interests of its citizens at heart.

Sinn Féin, from the Opposition benches and in the committee rooms, battled hard to get reforms introduced that should have seen the price of insurance premiums and the financial strain on consumers drop dramatically. However, the insurers have not implemented the reforms and have not dropped the premiums. In fact, they have brass-necked it out and increased premiums because they know that this Government, like the previous Government, is a do-nothing government. They know insurers will not be held accountable for high premiums because the Government does not have the rights of consumers in mind when it looks at insurance costs.

The cost of motor insurance went up a whopping 11.5% over 12 months in 2024, more than four times the general rate of inflation. It is almost double the EU average. How do they explain that to the Minister of State when he confronts them with this data? Does he even speak to them about it? Public and employer liability premiums have risen 56% over the past ten years. At the same time, the loss ratio has fallen from roughly 80% to 53%. Claims by cafés, hotels and restaurants more than halved between 2019 and 2023. Shops and stores saw a 44% decrease and sports and athletic areas experienced a 38% reduction. There are low volumes of claims for accidents in childcare settings, a sector that has historically reported high insurance costs, but insurance is one of the reasons that paying for childcare is still like paying a second mortgage. We used to hear from insurers that the high volume of claims was to blame for the high premiums. Claims are down but prices are still up.

The Government has a chance to end this insurance rip-off by backing Sinn Féin's legislation. This will hold companies to account, cut costs and keep money in people's pockets. The Government should stop being a do-nothing government. It should act now and stop allowing these companies to rip people off while making eye-watering profits. It should play its part in making life more affordable for people.

Natasha Newsome Drennan (Carlow-Kilkenny, Sinn Fein)
Link to this: Individually | In context

I thank my Sinn Féin colleagues for bringing forward this important motion on the cost of insurance.

The record is clear. Time and again, the Minister of State and his colleagues in government show clearly which side they stand on. They have consistently blocked, stalled and delayed reforms that would lower the cost of car insurance. As a result, they have ensured that insurance companies are given free rein to fleece ordinary workers. They increase the cost of premiums every year despite no claims, no penalty points on driving licences and the value of the car going down. People who are doing everything right are being shafted again and again.

I recently spoke to a young apprentice who is one of those ordinary, working people doing everything right. He is learning a trade, going to work and contributing positively to society. However, the cost of insuring his car - his only means of getting to work - is pushing him into debt. He earns approximately €300 per week and is only getting by with help from his parents. The country is crying out for more tradespeople, yet they are paid peanuts, only to be ripped off just for getting to work. He, like thousands of others across rural Ireland, cannot get to work without a car. Public transport is simply not an option. However, every year, the Government gives the green light to insurance companies to increase premiums and punish those working and living in rural Ireland.

Another man I spoke to told me that his insurance premium has increase by €330 in the past three years. Again, he has a perfect record. He was able to drop into the insurance company's local branch and complain and guess what? It suddenly found a way to slash his premium by €280, which shows the attitude of these insurance companies. This is their strategy. They fire on massive increases to see what they can get away with and rely on our silence.

Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
Link to this: Individually | In context

We are at a time of year when families are just coming up for air after paying the back-to-school costs and before long they will be looking at the big costs of Christmas and everything to do with it. Right now, there is very little air for them to get. They go into supermarkets and the grocery bill is higher than ever. If they are renting, their rent is skyrocketing. If they have mortgages, they are likely going up as well. At the same time, many of these people will get a bill for motor, health or home insurance and see it going up again.

This has been talked about for six or seven years frequently. I give huge credit to Deputy Doherty for highlighting these issues and pushing the Government. However, what is frustrating is that the approach of the Government seems to be all carrot and no stick and it is not delivering results. People out there, the same people who are looking at their grocery bills and wondering how they keep going up, feel ripped off and they are right to feel ripped off. They are certainly right to feel ripped off when they are looking at insurance bills that are going up and up from an already high level. The cost of motor insurance went up almost 12% last year at the same time as the sector was looking at profits of 8%. Insurance companies are coining it on the backs of ordinary motorists, families and workers, who are going about their business and have very little choice.

This the other thing about insurance. Sometimes we talk this about this as a private good or service. People are required to have most of these types of insurance.

They cannot go on the road without motor insurance. They are not entitled to buy a house without home insurance. These are things that are required. I have not even touched on businesses and community organisations. So many businesses can barely afford to keep going and so many community organisations have decided to cancel events or not go ahead with initiatives because of insurance costs. All these are crippling community organisations and business and, in truth, they are throttling communities and it is all because of this rip-off.

It is time for action on this. The carrot approach has been tried. The industry has got most of what it has looked for. It is time to put pressure on them. This legislation is a crucial tool to do so and to put pressure on them to pass on those profits to people who are struggling at a time they are under pressure from every direction. They deserve some relief on motor insurance and all kinds of insurance along with businesses and community groups.

Louis O'Hara (Galway East, Sinn Fein)
Link to this: Individually | In context

It is clear the cost of insurance is a rip-off. In advance of this motion, I spoke to my constituents. They have told me of the all too common story of insurance companies screwing them on premiums and renewals. To give an idea of this, one woman told me of how she faces an increase of over €600 between her car and home insurance renewals this year. She did not get a chance to speak to her insurance company before her policy renewed because a family member had passed away. Another man told me of how his car insurance renewal was close to double his previous premium despite having no convictions, penalty points or claims. It is clear large profits are being made off the backs of ordinary people while insurance companies face little accountability. Why is the Government letting them off the hook?

This motion is an opportunity for the Government to progress practical proposals to hold insurance companies to account. We have seen the previous reforms of lower costs for insurance companies but unsurprisingly these savings have not been passed on to customers. That is why we are calling on the Government to progress our legislation that will hold insurance companies accountable for not passing on cost savings. Why is the Government against this accountability when it could deliver savings for people?

The motion comes at a time when many families are facing skyrocketing costs across the board. I am not sure if the Government realises this. It seems to be totally out of touch with the reality that we have a cost-of-living crisis. I have people coming into my office every week telling me they cannot pay their bills. These are people who are working hard and families with two incomes who are really struggling to get by. We see the Government has refused to tackle rip-off insurance costs, has refused to tackle energy suppliers and is refusing to give people any kind of short-term relief whatever by ruling out a cost-of-living package in this year’s budget. How does the Government expect people to cope with all these price rises when it is refusing to directly support them in the budget? I am calling on it to stand on the side of workers and families to protect them from the rising cost of living and to stop companies from gouging these people.

Conor McGuinness (Waterford, Sinn Fein)
Link to this: Individually | In context

Right across the State, families, small businesses and community groups are being squeezed and screwed by soaring insurance costs. In recent months I have been contacted by families across County Waterford who are struggling to keep cars on the road. Any of us who represent rural constituencies in particular, but also all across Ireland, understand that having a car and keeping it on the road is a necessity for many families. Indeed, it is a necessity for anyone trying to hold down a job or pursue an apprenticeship, people who are in training or education. Premiums are jumping by hundreds of euro and in some cases doubling despite there being no claims on the insurance account and even with a full no claims bonus.

Motor insurance is up 11.5% in just the past year, its highest level in five years and nearly double the EU average, and average premiums have risen to over €616. In Waterford, like everywhere else, people rely on their cars to get to work and drop kids to school. We had statements last week on the crisis and chaos in school transport. The car has become ever more important to families, including for the care of elderly relatives. These hikes are not abstract and, as my colleagues have noted, they come in the context of increasing rents and grocery costs and they are hitting ordinary people every single day. People dread when the insurance renewal is coming. People have always dreaded it but now, when we are looking at trebling and other increases, it is particularly difficult. That is not to mention the impact of the insurance crisis and the lack of government action on public- and employer-liability insurance in the private sector for small and medium enterprises and for community organisations. Premiums are up 56% over the last decade yet claims in cafés, shops, sports clubs and community organisations have more than halved since 2019. I have heard from small-business owners in Waterford city who say that insurance is now one of their biggest bills and is more expensive than electricity in most cases. In west Waterford, a local childcare provider described to me how employer and public liability insurance has become such that she really questioned whether she would open her doors in September. Thankfully, she has, and we have, averted the loss of really essential childcare spaces but it was touch and go and she is not confident that she will not make a loss because of the enormous cost of insurance.

What we are calling for here is very simple. We are asking the Minister of State to back our proposals, which our colleague, Deputy Doherty has put down. It is very simple. We need to hold insurance companies to account. We need to ensure correct, fair and appropriate regulation and we need to make sure that people can keep some of that money in their pockets so that it can go into the local economy. The cost-of-living crisis demands action. That starts with tackling the rip-off in the insurance sector.

Rose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context

It seems desperately unfair that the runaway house prices across the State have led to an increase in home insurance costs. Home insurance is becoming a real problem meaning that some struggling families opt to underinsure their home or go without insurance altogether. The consequences of families taking a chance and foregoing home insurance played out earlier this year when Storm Éowyn arrived on our shores. Families without insurance were left relying on the state to step in and cover the cost of storm damage where pay outs from the humanitarian assistance scheme from Storm Éowyn already totalled €13.6 million. We end up paying one way or the other if people cannot afford home insurance and that is just not on.

For those who could afford home insurance in my constituency of Mayo, one of the counties most affected by the defective concrete blocks and pyrite scandal, this defect was not even covered in their policies so they must rely on State assistance under the defective concrete blocks scheme, which is also mired in controversy and payout delays.

I know that since I started in the Seanad at least, Deputy Doherty was leading from the Opposition in trying to tackle the cost of insurance. We have talked about it and talked about it. We have presented the solutions to Governments and told them what needed to be done across the board. We are now discussing this again today and how families who are really struggling are being ripped off. It is time to get those prices under control and give these workers and families a break. They cannot do that if they are being asked to pay this insurance. I have to go back to the defective concrete blocks situation and why we need a full public inquiry into what has happened there. All these people had their homes insured. Engineers were insured and there was insurance all around but not one of those insurance companies have paid out and the Government has not held them to account. It is time to hold the insurance companies to account.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

I apologise for being late but this debate came much earlier than any of us expected. I welcome the opportunity to speak to this House on the motion concerning insurance in the context of cost of living. This is an issue of immediate and real relevance to Irish households, to our small and medium enterprises and to the long-term competitiveness of our economy.

I would also like to commend Deputy Doherty on his work to date. He has been a very strong advocate in this regard, but he has not been alone on this issue. I thank him for tabling the motion today to give us an opportunity to discuss this issue and give me an opportunity to outline the work that has been done by this and previous Governments because outrage alone will not solve this issue. Significant work was done by the previous Government and I will update Deputies on progress.

Insurance is a framework that enables people to drive, open businesses, buy homes, employ staff and invest in the future with confidence.

When cost becomes unpredictable or excessive, it places pressure on every family budget and on every business plan. It is, therefore, important to outline what the Government has achieved to date, the evidence base on which we are acting, and the roadmap we have set out in the new action plan for insurance reform to enhance transparency, affordability and availability of insurance.

I will begin by highlighting the progress that has been achieved. When the Government introduced the Action Plan for Insurance Reform 2020, there was recognition that deep structural issues were driving Irish premiums above international comparators. Legal costs were excessive, personal injury awards lacked consistency and transparency was poor. Through previous reforms we have implemented fundamental change, including the rebalancing of the duty of care, reform of the Injuries Resolution Board, the introduction of the personal injuries guidelines, and enhancements to the National Claims Information Database, NCID. These were not small reforms. They represented a comprehensive restructuring of how the Irish insurance market operates and they are now yielding measurable results, not that Deputy Doherty will give any credit for what has been done.

We can see this clearly in the behaviour of the motor insurance market. I acknowledge that premiums had begun to increase in the past 12 months, but premiums in Ireland have fallen by around 34 points since 2016, even allowing for the recent increases. Today, the average private motor premium is €630, compared with £777 in Britain and £834 in Northern Ireland. I do not hear Deputy Doherty referring to this. This difference matters. It represented a shield for households and businesses in a period when costs elsewhere in Europe were rising due to inflation and supply chain shocks. Our focus is now on ensuring that the increases we have seen in the past 12 months are reversed.

We also see improvement in the composition of claims costs. In 2019, personal injury costs made up 72% of total claim cost, while material damage accounted for only 28%. Today, these figures have shifted, and personal injury accounts for just 44% while damage accounts for 56%. This shows that reforms have directly reduced the weight of personal injury claims in overall settlements. These structural reforms have provided what is commonly known as a shielding effect. They did not eliminate pressures entirely, as repair costs and severe weather events all add to premiums, but they prevented those pressures from being much worse. Without reform, Irish motorists and businesses would now be paying dramatically higher premiums.

Despite the tangible impact of the Government's reform agenda, the NCID has been instrumental in shining a light on where challenges remain. The latest NCID report for the first half of 2024 provides compelling evidence that for private motor claims under €100,000, litigated cases are some 22 times more costly than using the IRB, and take over twice as long, resulting in only a 1% higher level of compensation. For public and employer liability, the challenge is even greater. Around 70% of claims still proceed through litigation, and legal costs can amount to 40% of the total settlement in public liability. These inefficiencies feed directly into higher premiums for businesses. Unless we tackle this head-on, which we intend to do, the litigation model will remain a heavy drag on affordability.

Let us look at the future. On 24 July the Government launched the Action Plan for Insurance Reform 2025-2029. It contains 26 actions across six strategic themes, namely, transparency and affordability, competitiveness and availability, tackling fraud, innovation and skills, the climate protection gap and legal reform. Ten of these actions are designated as priority measures because they will have the greatest immediate impact on affordability and transparency. Deputy Doherty is aware that a significant public consultation was carried out in advance of drafting this action plan, and I would like to point out that no submission was made by Sinn Féin, in contrast to submissions being made by other political parties. I am aware of the Deputy’s Bill, and I do not for a minute doubt his sincerity on the issue, but where is the data to point to the Bill actually delivering the reforms or savings he says it will?

Our insurance sector employs over 35,000 people. This is something to which he never refers. He always calls for outrage but never refers to the critical importance of the insurance sector to the economy. We want to ensure any new measure introduced does not have a negative impact on our ability to attract new participants into the market. This is why data is critical. This is why this Government is engaged with the industry and the Central Bank to gather the relevant data to ensure we make the right decisions. I say quite openly that if Sinn Féin has material that would help in this regard, I am all ears. Deputy Doherty is aware I am all ears and prepared to take on board his claims if he can back them up with hard data. As I said, he had a prime opportunity to be involved during the public consultation phase but neither he nor his party made a submission.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

We produced legislation, for God's sake.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

The Deputy produced legislation but where is the data he promised he would give me on what was implemented in the UK?

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

We wrote the law.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Let me tell the Deputy what we are working on on a daily basis, not only in my Department but in the Departments of justice and enterprise. Our new plan commits to enhancing transparency in insurance premiums by working with the sector to introduce a transparency code. I have engaged directly with the Central Bank on this matter, meeting the deputy governor. The Central Bank, as the independent regulator, has been tasked with participating as an observer alongside the industry in the development of a code, ensuring that the level of transparency required is fully understood and appropriately framed.

According to the most recent NCID data, 2023 marked the first return to profitability for the insurance market after a number of years of losses. Liability insurance recorded a 13% operating profit in 2023, compared to a long-term average of 2.1%, while motor insurance showed an 8% profit, compared to a long-term average of 5%. Global conditions in 2023 reflected a hard market, with high premiums and reinsurance costs, yet insurance reforms shielded policyholders from the sharper increases seen elsewhere. In 2024, conditions began to soften, with greater competition and some premium reductions emerging. These figures demonstrate the importance of grounding any transparency code in robust, long-term evidence, and not basing it solely on one year's results.

Let us be very clear that I share Deputy Doherty's concern and I do want to see much greater transparency in place. The sector employs 35,000 people in Ireland, and decisions around additional reporting obligations have to be balanced correctly. We must have consumer clarity while avoiding overly burdensome requirements that could undermine the stability and competitiveness of companies.

The effectiveness of an industry-led approach has already been proven. The Insurance Ireland Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors has delivered real improvements and provides the foundation for the programme for Government’s commitment to legislate for the right to be forgotten. This is being advanced through the Central Bank (Amendment) Bill 2025, with Government amendments submitted to the Office of Parliamentary Counsel for review. In addition, the plan mandates faster release of NCID data and deeper sectoral analysis to further strengthen transparency and accountability in the sector.

We will also strengthen the Injuries Resolution Board. We plan to move at pace on legal reform and cost control. We will ensure Ireland remains attractive to insurers. The plan calls for an expanded office to promote competition in the insurance market.

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

Thank you.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Tomorrow I will be in London, meeting insurance companies to attract more players into the market.

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

Thank you, and we will now-----

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

A lot of work has been done, something Deputy Doherty will never acknowledge.

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

The Minister of State will be back in. His time is up.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Outrage will not solve any problem.

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

I call Deputy Pat Buckley.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

What the Government will do, just as the previous Government did-----

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

The Minister of State's time is up. I call Deputy Pat Buckley.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

-----is to ensure our action plan is implemented and will continue to deliver reform.

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

The Minister of State is way over time.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

More profits for the companies; well done. None of it has been passed onto consumers.

Verona Murphy (Wexford, Independent)
Link to this: Individually | In context

I call Deputy Pat Buckley, please.

Pat Buckley (Cork East, Sinn Fein)
Link to this: Individually | In context

I welcome the opportunity to speak on this Private Members' business. I commend Deputy Doherty on the tireless work he has done on this and on holding the insurance companies to some bit of account. We did not get many answers from the Minister of State. Many households who have had their renewal notices pop through their letterboxes in recent months have been shocked by huge hikes of 10% or more in their premiums, despite not having made a claim.

This is nowhere more true than in my own hometown of Midleton. I have met with, talked to and campaigned with residents who have been hit with massive increases in their home insurance premiums due to living in a flood-affected area. I spoke to one particular family who lives in a estate called Forrest Hill, which is on a hill overlooking the town of Midleton. I actually rang the insurance company on the family's behalf and was told that it was a flood risk. Considering Forrest Hill's height above Midleton, a flood there would mean Midleton being wiped out. There is definitely a bit of a scandal and a farce going on. There has been a lot of anger, frustration and despair among these residents, who are working harder and harder but are being absolutely hammered by soaring prices. They simply cannot keep up with these costs, which are out of control.

To add insult to injury, approximately 600 residents and businesses in east Cork whose homes and premises were badly damaged by Storm Babet in October 2023, when a month's worth of rain fell in less than 24 hours, are now being told by their insurance companies that their policies are no longer valid, turning every weather warning or incident of heavy rain into a dread-infused panic. Despite 2,500 applications for flood defences in Midleton, only 344 barriers have been rolled out.

Insurance companies have residents over a barrel and, if you live in east Cork, your choice seems to be between being left without insurance and constantly worrying about the risk to your home or paying astronomical insurance premiums. This is not a choice anyone should have to make. It is deeply unfair. Never mind the risk of flooding for rural homeowners, who face longer waits for the fire brigade, the ambulance and other vital emergency services and who also face higher premiums in comparison with city dwellers. Meanwhile, the insurance industry has generated huge profits by ripping off struggling families right across the country. Simply put, insurance companies are in the wrong and need to be called out. It is time to end the insurance rip-off and reduce prices for customers. Insurance costs in the country have been too high for far too long. It is time to ensure that all customers are treated fairly.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

Tá praghsanna árachais ró-ard agus níl aon rud déanta ag an Rialtas chun é seo a réiteach. The Government has completely failed to address the cost-of-living crisis. In fact, it seems to be in absolute denial that families and workers are going through a cost-of-living crisis with regard to energy costs, grocery costs, general housing costs and particularly the costs associated with having no choice but to drive a car to work, to school or wherever the case may be. Not only has Government failed to introduce measures to support such workers and families, but it has actually made their lives harder by increasing the cost of petrol and diesel, which it bizarrely intends to do again in a number of weeks.

The Government has paid lip service to demands for action in respect of insurance costs. I note the Minister of State's big complaint is that Sinn Féin is not giving him credit. Insurance costs have risen at a rate four times higher than that of general inflation, which is itself too high. The Minister of State should be asking himself why his Government has not taken meaningful action to address these issues despite the extensive evidence that previous reforms made with the stated purpose of reducing insurance costs clearly have not resulted in savings being passed on to consumers. People are now being hit on the double. They cannot afford their insurance premiums and therefore have to pay on a monthly basis. Like those who are forced to pay their motor tax periodically rather than annually, they are hit on a secondary level. The problem is particularly acute in constituencies like my own and that of the Leas-Cheann Comhairle, where people do not have public transport and so have no option but to drive to their place of work. On top of high insurance costs, they are also fleeced by the high cost of petrol and diesel.

Households, motorists, businesses and community groups need action on insurance costs. The rip-off cannot be allowed to go on any longer. Rather than looking for credit, I contend that the Minister of State needs to look for answers. The answers have been produced by Deputy Doherty. I would take his advice if I were the Minister of State.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

He did not make a submission to the public consultation.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

He produced legislation for the Government to enact but it refused to do so.

Thomas Gould (Cork North-Central, Sinn Fein)
Link to this: Individually | In context

I will be honest; this is mind-boggling. Insurance companies have been ripping off the Irish people for as long as I can remember. I am 57 years of age. I have been driving for 39 years and for 39 years these companies have ripped off me and everyone else in this State. People are struggling with the cost of living. They are struggling to put food on the table, to pay the rent and to keep the lights on and everyone needs to get to work, school, college or hospital appointments. You cannot depend on public transport. I live in Cork city, the second city in this State. Even in the cities, you cannot depend on public transport. You need to have a car if you need to get to appointments, work or college. The Government is allowing the insurance companies to laugh at the Irish people and to rip them off year in and year out. Deputy Doherty has brought forward facts and figures. He has outlined how these companies have ripped off the Irish people. He has brought forward Bills to tackle this rip-off. What is it? Why will the Government not tackle them? Are there vested interests involved? Is the Government afraid of upsetting the apple cart? What is the issue here?

I have a daughter who is 19 years old. She has just learned how to drive. A couple of weeks ago, she passed her driving test on the first attempt, which is brilliant. She is going to college. She is doing a small bit of work part-time and going to college as well. Without me and her mother, she could not afford the insurance to drive our cars. I have a good job. I am a Teachta Dála. What about the other families out there? My wife is a schoolteacher. What about ordinary people who are on the average industrial wage or lower-income people? How are they supposed to survive? They must pay for car insurance, home insurance and all of these things.

The Minister of State is getting his answers from his officials. Deputy Doherty has given him the answers but he has turned a blind eye time and again. It is time the rip-off is stopped. It is time the insurance companies are tackled. It is time this Government stood up on this issue once and for all.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

Keep going.

Thomas Gould (Cork North-Central, Sinn Fein)
Link to this: Individually | In context

To follow on, I see the Minister of State is reading his notes. When he gets the opportunity to address us, I would like him to explain to us how the companies justify the prices being so high. We understand there are costs to insurance, including the cost of payouts and the costs of administration, but how can the enormous profits these companies are making be justified?

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

That is why we are bringing in a transparency code.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

I ask the Minister of State to address his remarks to the Chair.

Thomas Gould (Cork North-Central, Sinn Fein)
Link to this: Individually | In context

They are making huge profits. What is the Minister of State doing about it?

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

We are introducing a transparency code.

Thomas Gould (Cork North-Central, Sinn Fein)
Link to this: Individually | In context

Has the Government capped these profits?

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

That is not possible.

Thomas Gould (Cork North-Central, Sinn Fein)
Link to this: Individually | In context

I am asking a question. The Minister of State is telling me we are wrong. I am asking him a simple question. Has the Government capped these profits? What has it done to tackle them? It is not just insurance.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Is it Sinn Féin policy to cap them?

Thomas Gould (Cork North-Central, Sinn Fein)
Link to this: Individually | In context

The Government has done the same with electricity and gas. It lets private sector companies come in and do whatever they want in this country. Not only that, but Europe has allowed the same thing. We have the highest prices for food, insurance, electricity and everything else. Fine Gael has been in government for 14 years and Fianna Fáil has been in government for ten. It was they who allowed this continue. What have they done to stop it?

We are trying to bring forward solutions. I can fight with the Minister of State all day long. I will stand up here for 24 hours and fight with him. There is no better man to do it. We are coming in here to try to fix problems because there are people watching this tonight who are asking what we are doing. We are the Dáil. We are the Teachtaí Dála. We are supposed to bring forward solutions for ordinary families. I spoke to a person over the weekend who told me she is terrified of Christmas. How is she going to put that together for three children - two girls and a boy? I was at the boy's match the other day. She is worried about Christmas. People were worried when the kids went back to school, they are worried about Christmas and they are worried about birthdays. At the same time, they are worried about how they are going to pay their car insurance. A great number of people in the areas I represent have dropped house insurance because they cannot afford it.

I will leave the Minister of State with this. I know a girl who applied for Cork City Council housing. She was being interviewed to get a house. Does the Minister of State know why she was refused a house? It was because she drove a car without tax or insurance. She did not have the money for them. Not alone could she not pay for them, but she got no house as a result. That is how desperate people are.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context

I thank an Teachta Doherty for tabling the motion and recognise the work he has done this over the years. I also recognise the work the Minister of State, Deputy Troy, has done. We made a submission to him on this and are waiting for the suggestions we made in that submission to be acted on. I recognise the various reforms that have happened over the years.

However, in his comments the Minister of State did not address what is going on in the industry in terms of profits. He is correct in saying that it is an important industry. It is important in terms of employment and is an important part of our economy. However, he did not properly address profits in his comments.

He asked us to give him hard data. I will give him a piece of the hard data he asked for. According to the National Claims Information Database, NCID, insurance companies' profits stood at 13% in 2023. That is more than double the international norms. The Minister of State knows the international norms are about 5%. It is all well and good that reforms are taking place, that there are action plans and there are plans for more things, but profits are at an absolutely unjustifiable level. People need the Government to act now on this.

There is not just an issue with insurance companies in terms of profits but also brokers, which I will address shortly. One insurance broker, Chill, saw its profits increase sixfold last year. That is quite phenomenal and needs to be addressed.

The Minister of State spoke about an industry led approach to solving this. It is no wonder he dodged talking about how to solve the issue around profits because the industry will not come forward with solutions to reduce their profits. The Minister of State knows no industry will do that. In fact, as an Teachta Doherty said, we had promises along the journey in respect of reforms that profit levels would be approximately 5% if the reforms were delivered. There have been substantial reforms and reduced costs, yet profit levels stand at 13%. With respect, after those broken promises to expect the industry to turn around and lead the charge to reduce its profits is something that will not happen. This needs Government action. I agree with the Minister of State on other areas of reform. Industry led reform can be a way of doing things, but to reduce profits in industry is cloud cuckoo land, with respect. I ask the Minister of State to come back to earth on this in terms of how we will tackle these runaway profits.

The motion is being debated in the context of a cost-of-living crisis in terms of housing, rents and grocery prices which are three times the rate of inflation. Meat prices, in particular, have increased. According to Barnardos, four out of ten parents are skipping meals or eating less so they can feed their children. I know the Minister of State is aware of this. It is one reason we need immediate action to reduce insurance costs.

As everyone who has spoken has referenced, the political system has delivered significant reforms. Premiums should be going down and profits should not be going up. Personal injury claims and public liability and car accident claims brought to the Injuries Resolution Board were down 40% between 2019 and 2023, yet in the first half of this year motor insurance premiums have increased by 9%.

The Dublin City Motocross Club is a brilliant initiative, and similar ones have been set up around the country. It was established to provide facilities for young people to engage in a safe way with motocross facilities off-road recreationally. A huge amount of effort has been put in by volunteers over the years. A similar club in Mulhuddart was forced to close in February after a number of years because of skyrocketing insurance costs. My colleague, Councillor Daniel Ennis, has spoken very strongly about what a great facility it was in terms of providing a positive outlet for the people using it to use their energy in a positive way. It was really good for well-being and mental and physical health. However, these kind of initiatives are being closed because of insurance costs and a failure to tackle the increase in profits for insurance companies while reforms have been delivered.

Vincent Jennings from the Alliance for Insurance Reform spoke to the finance committee recently about the impact insurance costs are having on small businesses. He said:

[P]eople [are] paying more than they were five years ago even though those people have not had a claim in five years and have sweated hard to get to that point. It is a cost of business that is unfair. We all understand we need insurance, and we have all paid insurance for all the years, but not at this level and not to fatten up these people who are taking two and a half times more than the European average. The members must be furious; we are furious.

I understand where he is coming from because the alliance, together with the political system, has worked to implement reforms over the years. Yet, it is seeing the costs continue to rise while profits of insurance companies increase. That needs to be tackled.

I said earlier I wanted to address the issue of brokers with the Minister of State. It is part of the equation and requires reform. I again want to quote Vincent Jennings from the Alliance for Insurance Reform who spoke at the finance committee. He said there is no incentive for brokers to get the best quote for their customers and few of them are prepared to do that. He went on to say they are playing the same game and it seemed to him they are at the behest of insurance companies rather than looking after their clients, and that is the truth. That may not be the case for all brokers, but certainly it us the experience that he has had in terms of what he is dealing with that has not been tackled. Brian Hanley from the Alliance for Insurance Reform said it is a curious model that the worse a broker does for a client, the more money they make and as a business model from a consumer's point of view, prima facia, that seems to be unfair. This needs to be tackled.

I am calling on the Minister of State to do several things. In our submission we referred to legal fees, which consume a significant proportion of costs for insurance companies and acting as an obstacle to reduce the cost of premiums. That needs to be tackled. Legal fees for personal injury claims should be capped using the same model used in the District Court.

It is also clear that, despite falling payouts and increasing profits in the public liability market, premiums have continued to rise. There needs to be Government action on this. At an absolute minimum, the Government should be ensuring that the calculations justifying any changes to premiums are published. The Competition and Consumer Protection, Commission, CCPC, should examine the public liability market. Of course, the Government could ask it to investigate why premiums have not come down in line with claims and payouts. Why has the Government not done this?

The insurance link database should not be operated by Insurance Ireland. The data is crucial for potential new entrants to the Irish market and should be readily available to them and operated independently. The Injuries Resolution Board should manage its data in the same way as the Residential Tenancies Board manages data on the rental sector. Those things should be done today. In fact, they should have been done yesterday.

The Government needs to accept and acknowledge that the reforms to date have not resulted in the reductions in premiums that they should and at the same time profits are at unacceptable levels by international standards. The Government must acknowledge that. Does the Minister of State defend profit levels more than double the European norm? I cannot see how he does. If he does not defend that, why is he not acting immediately?

Action plans and minor reforms are all well and good, and we have had significant reforms, but they have delivered an increase in profits that is grossly unfair. It is putting small businesses, clubs, voluntary organisations, residents' groups and community clean-ups under huge pressure, not to mention the massive pressure it is putting on individuals and households.

Séamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

The Government must stop the insurance rip-off. Insurance companies are still ripping off the public despite the fact that claims and awards are significantly reduced. Claims statistics show a fall of 40% in the claims between 2019 and 2023 and awards are down over a third. The Central Bank has pointed out that premiums increased by 17% between 2020 and 2023. At the same time, insurance companies' profits are at 13%, more than twice the international rate of profitability of these companies. The Alliance for Insurance Reform surveyed 775 organisations and found that 74% had premium increases in the past two years.

Only 14% had reduced premiums. Community organisations, sports clubs, voluntary groups and small businesses are seeing new exclusions and higher premiums. In other words, they are paying more for less cover, despite there being fewer claims and safer practices. There is absolutely no justification for this situation. Premiums must now reflect the reduced number of claims and the reduced awards. The Government must take action to make sure this happens.

The increased cost of motor insurance is putting families and young people under severe pressure. The cost of motor insurance has increased by more than four times the general rate of inflation. This is particularly disadvantageous to people living in rural areas where there is no or very little public transport. People in these areas have no option but to drive to work, school, college and entertainment. For example, people who live in south Tipperary and work in Clonmel, in Tipperary University Hospital, Tipperary County Council or in the medical devices industry in Medite, Showerings or MSD, must drive to work. Students attending the Technological University of the Shannon campus in Clonmel must drive to college. Young people are being especially fleeced. Health insurance is another area putting families under severe pressure. Another raft of health insurance increases was announced recently, and policyholders now face premiums of in or around €2,000 per annum. This is impacting almost 2.5 million people in the country.

Flood insurance is another area that is very difficult. More than ten years after the successful completion of the Clonmel flood relief scheme, householders and businesses are finding it difficult if not impossible to get flood insurance. If they are able to get it, it is with heavily loaded premiums. The Clonmel flood relief scheme was completed in 2013 at a cost of €44.5 million. The scheme was completed to one-in-100-year protection levels. It has been very successful, but despite this and the exceptional level of protection afforded by the scheme, insurance companies are still denying insurance cover or are heavily loading premiums. This applies not only to properties that have a previous history of flooding but to homes and businesses that have never flooded and are far away from previous flood events. If you have an address in Clonmel, the insurance companies are immediately suspicious and refuse to take into account the very positive impact of the flood relief scheme. I know the Office of Public Works has a memorandum of understanding with Insurance Ireland, which represents the insurance industry, and it sets out the principles of how the two organisations work together, or should work together, to facilitate the availability of insurance against the risk of flooding. This memorandum of understanding is, I am afraid, not fit for purpose. I believe it requires urgent review. Currently, one in 20 buildings or properties has difficulties accessing flood insurance according to the Central Bank. Of course, this number will increase in the future as significantly more rainfall comes along due to climate change, which, of course, increases the likelihood of flood events.

I ask the Minister of State to intervene directly with the insurance industry to ensure properties in areas where modern flood defences have been erected have access to flood insurance on the normal basis. Ultimately, the State may have to step in to provide a type of governmental insurance of last resort to cover those who cannot get insurance at all. This problem, of course, is going to get bigger over the coming years. The Programme for Government 2025 - Securing Ireland's Future commits the Government "to further action to drive down insurance costs impacting households, motorists and businesses ...". It sets out ten actions to do this. It is time to deliver those actions.

Brian Stanley (Laois, Independent)
Link to this: Individually | In context

I welcome the proposals set out in this motion. I must say there have been many promises regarding improvements to the insurance industry but these have not happened for the customers. The costs of motor, business and home insurance are up. Insurance costs for community and sports groups are up sky high. Health insurance is out of reach and causing significant problems, especially for people over the age of 60. The cost of motor insurance is increasing at a rate double the EU average. There have been double-digit increases in a single year. In the first six months of 2024, the cost went up by 9%. That was 9% in just a six-month period. Small businesses tell me the whole time they are paying astronomical insurance costs. The Minister of State will know that public liability insurance for shopkeepers and other people who must have it is costing a fortune.

Areas where there is flooding, such as Mountmellick, but where flood relief schemes are not yet in place, are simply being refused insurance coverage in a lot of cases. As the previous speaker said, where flood relief schemes have been put in, that is not being recognised by the insurance companies. Voluntary groups and sports clubs are under enormous pressure. It is a huge undertaking for volunteer organisations to have to come up with the money for these costs every year on top of all the other overheads, such as payments to Irish Water, electricity costs and everything else.

The worst aspect, though, is the cost of private health insurance. This is especially the case for those aged 60 and over. They have no choice in the current circumstances, because of the gaps and weaknesses in our public health system, but to take out private insurance. Some of these people are just on a State pension. I have come across people who are just on the State pension and are paying €2,000 or more a year for their basic cover health insurance. This is over €40 a week out of their pension of €260 or €270 a week. It is substantial. Some of these people paid 60% tax rates back in the 1980s. Health insurance companies are introducing not one and not two increases in the cost of insurance in a year, but three increases. There could be three increases in the year. The cost rise is absolutely galloping ahead, and all of this is happening during a cost-of-living crisis. The worst part of this situation is being carried by ordinary workers and families, especially those on low and middle incomes. They are entitled to very little but they are paying for everything.

When we joined the EU Single Market, we were told there would be a lot of reforms and we would benefit from all of it. It does not, though, seem to have worked out in the insurance industry. We are completely out of sync with the rest of Europe in terms of our motor, business and other insurance costs. Reforms have happened, and they were welcomed. I certainly welcomed them at the time. More are required, though, because business as usual is not good enough any longer. It is not an option. Insurance companies are highly profitable because, on the one hand, the cost of claims has reduced substantially, while, on the other hand, the cost of insurance has gone up.

As I said, it cannot be business as usual. The powers of the competition authority need to be strengthened. Legal fees need to be reduced. We have been promised a number of times that this would happen. It has not happened. The Government must ensure there is transparent oversight of insurance companies not passing on savings. We also need proper oversight of the personal injury guidelines. We must ensure there is proper monitoring in that area. Action is now required from this Fianna Fáil and Fine Gael Government because we cannot continue with the high costs we have on small businesses, on householders and on motorists.

Many people commute every day from County Laois, where I live. More than 12,000 people commute out of the county every day. On top of that, there are people in the county living in outlying areas such as Rathdowney, Borris-in-Ossory, Ballaghmore and Emo who have to travel into work by car, not having any other option. They are paying astronomical prices. Some people have been caught in the last year or two without insurance. These are people using the car for work. I have come across people who have just not been able to afford the cost of insurance, so they have a choice between driving the car to work without insurance and taking the chance of eventually getting caught, or giving up the job. That is not a good place to be. We must reduce the cost for people who have a good track record of safety on the roads. Their costs should be going down in a meaningful way every year, but they are not.

Loyal customers should not be taken for granted as well.

We need proper reforms. We need the measures I have outlined. Legal fees need to be reduced as well. The Government needs to ensure these companies are not doing what they like here in Ireland.

Michael Collins (Cork South-West, Independent Ireland Party)
Link to this: Individually | In context

I fully support this motion, which rightly calls out the Government's failure to tackle the rip-off culture that has existed in the insurance industry for many years. I have stood in this Chamber previously to highlight the burden that sky-rocketing insurance premiums place on ordinary people. In November 2023, I asked the Minister for Finance why a constituent's motor insurance had increased so drastically. The answer referred to market trends and risk profiles, but what about fairness and accountability?

Let me remind the House of a case I raised here in the Dáil. A man with full, comprehensive health insurance - it is not just car insurance we should be talking about - who was battling cancer was denied access to pembro, a life-saving medication. It was only after I raised the issue publicly that the insurance company finally gave in. What about those who do not have someone to speak up for them?

We are now facing a three-tier healthcare system in this country. If you have insurance, you are offered the treatment. If you have insurance but the company refuses to pay, you are left fighting. If you are on a medical card, you are not even offered the option. This is not just inequality; it is inhumane. It is a system that puts profit before people and it must be dismantled.

Motor insurance costs have risen by more than four times the rate of inflation and health insurance now costs families nearly €2,000 a year. That is not just unsustainable; it is unjust. While claims-related costs have dropped, premiums continue to rise. Business and community groups are paying more for less. I know it because I am in plenty of community groups. It is astonishing. The price of insurance is incredible for the voluntary work they are trying to do. This is not reform; this is exploitation.

Independent Ireland is a party that stands for commonsense and fairness. Our manifesto calls for real oversight of profiteering industries. We propose a Department of efficiency and reform, staffed by experts from the private sector, to root out waste and ensure value for money. We support the Judicial Council (Amendment) Bill 2021, which would ensure that the benefits of personal injury reforms are passed on to consumers, not pocketed by insurers. We demand Oireachtas oversight of personal injury guidelines and insist that any future policy changes must result in lower premiums for the people of Ireland.

This Government boasts about the action plan for insurance reform. Some premiums have dropped since 2016, but the reality is that most people are still paying more and insurers are making disproportionate profits. We in the Independent Ireland party believe that insurance should protect, not punish. We call on the Government to stand up to insurance companies and demand fair pricing, address excessive profits in the sector, recognise the role of high insurance costs in driving the cost-of-living crisis, and ensure transparency and accountability in all future reforms.

As I have said previously, we must deliver for the people who elect us. That means fighting for fairness, for affordability and for reform that actually reaches the pockets of workers, families and communities.

There was mention of flood insurance earlier on. When new flood structures have been put in place, many people come to me to say they still cannot get insurance. When you are trying to buy a house, you are told straight up you will not be able to get insurance after buying the house even though the flood structures are in place. If it was previous to that, you would say something, but it is very unfair. The insurance companies need to be brought to task for that. Everybody wants to buy a home, but they want to have the comfort of at least being insured.

I would appreciate it if the Minister of State would look into these matters.

Richard O'Donoghue (Limerick County, Independent Ireland Party)
Link to this: Individually | In context

I met a man during the week who married a woman from County Tipperary. This is actually laughable. When the woman he married moved from County Tipperary to County Limerick, and went to renew her car insurance premium with the same company she has been insured with for the past 20 years, they charged her €179 more because she had moved to County Limerick. Even though the same person is driving the same car, she is being charged more because she got married and moved to County Limerick. When we tried to find out the reasoning for this, we were told it is all down to computer assessments on insurance claims within each different county, whatever it is. It does not matter whether you are in the city or the county; you are within the county bounds and that is what it says. Is an insurance company not supposed to cover all of Ireland rather than singling out individual places? Why is it the case that if you go to Galway you get one quote, if you go to Kerry you get another quote, if you go to Tipperary you get another quote and if you go to Limerick you get a different quote again? How can it be possible to have different car insurance quotes for different counties?

In the case of housing insurance, inflation means that the value of your property will have jumped over the past four years. A 1,000 sq. ft house that had a valuation of €120,000 and rebuild costs of €140,000, is now on €240,000 rebuild costs. It is the same house that was there ten years ago but the rebuild costs mean you pay a higher premium. It is the same house, but the premium is higher. In the case of health insurance, it is the same thing - up, up, up - but the ordinary person pays more.

You can raise the minimum wage and all the different wages as high as you like, but all it is going to do is drive inflation and put more taxes into the Government pocket for it to waste on non-delivery. That is what is happening. These increases drive inflation. We pay double the price for the same product and we get less from the Government. It is not something for the Minister of State to smile about. I saw the Minister of State smiling a minute ago, but he is not smiling now. Why do these delivery issues persist? I am building all my life. Does the Minister of State think that if I went out tomorrow morning to take on a project and I came in at a loss, I would be in business today? The Government can come in at a loss on every project and it is still here. All it is doing is raising taxes, raising everything and getting no value for money. No matter what the Government does with people's wages, it is pricing them out of the market in every sector. Not only that, but it is allowing all the insurance sectors do the same. There is no accountability across the board.

The Government looks at medical insurance from the point of view of viability. People tell me they need to pay for private insurance because they are afraid that something will happen to their children and they will not get help. They tell me that if they go public, they could be waiting for six or eight months. A person rang me last night who has four clots. When he met the consultant, the consultant told him he would have to wait between six and 12 months to be seen. He has four clots. He is paying for private insurance. He was told that in the public system, he could be waiting up to two years. How can we stand here and allow this to go on and on, with no accountability? It has to stop somewhere. The inflation in every sector across the board has to stop. The Minister of State, Deputy Troy, has to stand up and say, "No." He has to stand up and tell them to stop. He has to stand up and cap them, and make them accountable for people so they can live and have cover.

Paul Lawless (Mayo, Aontú)
Link to this: Individually | In context

The cost of insurance is crippling to so many young people. This Government has already priced young people out of the housing market, and out of the opportunity to have their own home. Now the Government is pricing them off the road. The Government is taking away their independence. That is what is happening. Over recent years, premiums have risen by on average by almost 10%. The major issues are the lack of competition; inflated claims and the culture around claims; and legal fees. Young motorists are not only paying for their own risk, but they are also paying for systematic failures, historical legal costs and an out-of-control culture when it comes to claims. We need to focus on the solutions. We need to focus on reforming the claims culture and the awards associated with claims. We need to increase the competition in the market.

The European Commission recently investigated the sector in Ireland and found it is highly concentrated and behaving like an oligopoly. There is so little competition that it is driving up prices for consumers. It is consumers and motorists who are paying the price.

I want to raise a very important issue, namely, the litigation bonanza that is happening, particularly in the motor insurance sector. With regard to fees, 70% of the payout goes to the legal profession, that is, 70% of the total cost of a claim. For example, the average cost of legal fees is €23,000 for a claim of €46,000. That is incredible, in particular when the average claim through the personal injuries board is €700. I am asking the Minister of State to do a number of things. When it comes to litigation, Germany caps the legal fees associated with this, and the same should be considered here. I have no doubt it would crystallise the minds of those in the legal profession to perhaps engage in a pre-court settlement.

I also want to raise the issue of the personal injuries board. The vast majority of claims are being settled by the court route, which is still dominant. The IRB was set up to assist in reducing legal fees in the insurance sector but it has not worked. We need to review it. In fact, we should consider having more claims go through the IRB in a mandatory fashion and make its cases binding. We cannot have a situation where the IRB is twiddling its thumbs while the vast majority of cases are going to court, and 70% of the cost is tied up in legal fees. It is a major issue and must be addressed.

Danny Healy-Rae (Kerry, Independent)
Link to this: Individually | In context

I thank Sinn Féin for giving us the opportunity to discuss the cost of insurance in the Chamber. We have done it many times before but I do not know if anyone has been listening to us. Clearly, there is not enough competition in the market. I honestly believe, and have said before, that when Seán Quinn was competing in the market for insurance and was an alternative, that was the only time that insurance costs came down. Clearly, it is because there is not enough competition.

Motorists are paying through the nose for insurance, especially young people. I always say we should give youngsters a chance. They might blot their copybook and misbehave when driving the car, which is a lethal weapon if not properly used, but we should give them a chance. Surely now that they are doing theory tests, lessons and so on, 99% of them behave properly. They should be given a chance. However, they are being driven down through the ground with the cost of insurance. It finishes up with their parents having to insure them on their policies because the children cannot get insurance themselves. It is sad that they do not get the chance, given they are being charged so much.

There are high costs for hauliers due to public liability, and the same goes for other businesses, such as taxis and bus operators. All of those people are paying savage sums. It is clear that the insurance companies are reaping the benefits and taking a lot more profit than they need to.

Businesses are suffering due to claims and there seems to be no regulation of what claims can amount to. Whiplash is common in the UK, where people are suffering after any kind of tip at all. There is a set price of about Stg£9,000 for whiplash in the UK whereas it can be up to €90,000 here. I do not say that people have brass necks; some of these people who operate the claims culture now have gold necks due to the money they claim and are awarded. It is very unfair on other people. The claims culture is increasing. I ask the Minister of State to look into this to see if there is any way it can be curbed.

The cost of private health insurance is an issue that I have raised before. The people who try to purchase private health insurance need to be applauded because they are paying towards the cost of maintaining their own health. However, we can see what happens. If someone who does not have health insurance goes into any hospital in the country tonight, the charge may be €70 or €80 for the night. Invariably, the hospital will ask the person if they have private health insurance and if so, the charge will be €800 or more for the night. That is not fair. It is driving up the cost for poor and elderly people who are paying for private health insurance, and for couples who are paying for their children by adding them to their policies as they come along. They are paying through the nose for it. That needs to be addressed.

Deputy Stanley referred to community events and voluntary organisations that put on shows in trying to retain their parish’s identity. Many of them have failed to get insurance cover, which is a disgrace. The Government should look into why they are being charged so much. It is not fair.

The insurance companies now have ways of looking up where people live. They can say that someone is living on a flood plain and many people do not get insurance even though their houses were never flooded. Just because they are near a flood plain could mean they are not covered by house insurance. That is not fair. I ask the Minister of State to look into this issue.

I have raised a number of issues, including young drivers, hauliers, bus operators, businesspeople and the fact there is no end to the amount of a claim. Another issue is that if somebody has an accident on the road, they will ring their insurance company. From that minute, the insurance is loaded even though blame has not yet been apportioned and it could be that the other driver was liable. However, I guarantee that the person’s policy will not come down next year. Once it goes up at all, up it will stay. I ask the Minister of State to look at that as well.

Michael Cahill (Kerry, Fianna Fail)
Link to this: Individually | In context

Despite the enormous profits being made by insurance companies in this country, premiums continue to rocket upwards. Given that insurance is not alone essential but, in instances like motor insurance, it is required by law, the Government should have stricter control of any proposed increases in premiums. We know that increased construction costs have a large effect on domestic house insurance but increases of 20% year-on-year appear to be over the top and unwarranted. Businesses can succeed or fail depending on how well costs are controlled, and insurance premiums are totally outside the control of business managers. Businesses need confidence in the ongoing costs that they will incur going forward so they know what they can invest back into their project.

Car insurance, thankfully, seems to be the one type that, in recent years, has become a little bit competitive. Drivers can shop around for a cheaper quote, young drivers being the exception.

They are hit the hardest of all. I have noticed that if you need to make a claim, your premium is increased for a number of subsequent years until you have reimbursed the insurance company fully. Insurance companies calling payouts or claims losses is inaccurate as they are reimbursed by the insured. This means the insurance company never loses.

Controls that exist need to be tightened up to ensure that house, car, health and business insurance in general are affordable to the public. Even if not legally required, it is desirable that insurance cover is availed of by as many people as possible to avoid heavy losses, not alone to business, but to private citizens as well. Your house and your car are usually the two largest investments for people today and loss of or damage to either can put a private citizen in deep debt very quickly or out of business. Can the Minister of State outline what controls of insurance premium price rises exist and if there are any plans already in train to tighten them up?

Deputy Healy Rae mentioned flooding. I come from an area close to Cromane where houses have been subject to tidal flooding. They too have a huge issue in obtaining housing insurance afterwards and I have known many more cases around my county.

I wish to take this opportunity to raise the position of horse and pony racing insurance. I have been contacted recently by people involved in horse and pony racing who believe their business is going to come to an end. They attract huge crowds every year and it is where the great jockeys - Paul Townend, Ruby Walsh and all the others - started out in life. Horse Racing Ireland, until two years ago, was giving them €80,000 towards the cost of insurance but that has now stopped. Any assistance the Minister could give to the horse and pony association would be extremely welcome. There are 26 meetings nationally, including the Dingle races which are very popular in the month of August in County Kerry, and indeed there are many more. That industry deserves our support.

Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context

As we conclude the debate, I want to acknowledge that the Minister of State, Deputy Troy, and his officials who have been listening throughout this debate. I want to bring us all back to the essentials we are discussing here today which is that insurance is not abstract. It is a daily reality for every motorist, every small business and every household. It is the guarantee that if the worst happens - a car crash, a workplace accident or a flood - there will be compensation and life can move forward. When the cost of that guarantee spirals, however, it burdens families, suppresses entrepreneurship and damages competitiveness.

According to the National Claims Information Database - many Deputies have referenced the NCID today - which is an independent verified database by the Central Bank, marked in 2023 that the first return to profitability for the insurance market occurred after years of losses. Liability insurance recorded a 13% operating profit in 2023, though the long-term average is just 2.1%. Motor insurance has shown an 8% profit with a long-term average of 5%. Global conditions in 2023 reflected a hard market with high premiums and reinsurance cost, yet Ireland's reforms have shielded many policyholders from sharper increases seen elsewhere. In 2024, conditions began to soften with competition, increasing with some premiums' reductions emerging but vigilance and reform momentum remain essential.

I want to stress the importance of having a stable and profitable sector, made up of both domestic and international firms which seek to supply the needs of all sectors within society. In this regard, one of the key priorities of the Government's new action plan is in ensuring a greater level of transparency in all aspects of our insurance market. I know the Minister of State, Deputy Troy, is very much to the fore in this regard. When reforms have shifted behaviour, such as through the Injuries Resolution Board and the personal injuries guidance, costs and delays have fallen. Where litigation still dominates, the old inefficiencies remain and this is the challenge we all face.

I want to briefly touch on the matter of health insurance which has been raised in the debate today. Although this matter is primarily for the Minister for Health, Deputy Carroll MacNeill, the Government will continue to engage closely with her and her Department to ensure the insurance framework supports patients and maintains public confidence. Ireland's private health insurance system is built on the principles of both fairness and equity, community rating, open enrolment, lifetime cover and minimum benefit. The minimum benefit regulation ensures every consumer has access to a guaranteed baseline of hospital treatment cover, regardless of the plan type they hold. While insurers make their own commercial decisions on which service and provider to cover, they must do so within the framework and are regulated by the Health Insurance Authority.

That said, patients are strongly encouraged to check their cover in advance of the treatment so they have clarity and can avoid unexpected costs. The new action plan is designed to target this gap directly and commits to transparency for consumers through a transparency code, faster national claims, information database releases and also access to legal cost data.

We are also strengthening the Injuries Resolution Board with default mediation, remittal powers and potential legal fee awards to encourage uptake on legal cost reform or including benchmarking awards and reviewing the judicial courts Act in developing scales of fees for litigation. On competition, through the expanded OPCIM, we are streamlining authorisation and EU engagement. On fraud reductions, we are strengthening penalties, Garda industry intelligence sharing and measures against uninsured drivers. As regards climate resilience, we have a long-term flood insurance strategy linked between public investment and coverage to build back better incentives.

Implementation is an all-of-government approach with oversight by the Cabinet subcommittee chaired by the Tánaiste. Work has already been put in place. This delivers for SMEs in hospitality, retail and construction with fewer shop premium hikes, clearer liability costs and a more stable operating environment. For motorists, we have transparency in pricing, swifter claims and less exposure to excessive legal costs, and for insurers and investors, a disciplined, predictable market reducing risk and enabling innovation. Insurance is not a luxury; it is a pillar of economic confidence and by cutting costs and promoting transparency and opening the market, we reduce burdens on families, support businesses and enhance Ireland's attractiveness as a hub for financial services.

Our message is very clear to our citizens and to the markets. Ireland is not standing by. We are reforming and embedding transparency, discipline and fairness into our insurance system. We are determined to shift from a cycle of rising premiums to a more sustainable, resilient insurance market. Insurance must protect and facilitate not penalise. With this action plan, we can ensure it does that today, tomorrow and into the future.

Fionntán Ó Súilleabháin (Wicklow-Wexford, Sinn Fein)
Link to this: Individually | In context

The insurance rip-off, which is what it is, affects every single household, every motorist, every business, every community and every group across this land. We are all getting fleeced by a cartel of insurance companies that are making two to three times more profit here in Ireland than they are in other countries. It is a gangster's paradise basically. That is not speculation; it is fact. It hiked up motor insurance by a massive 11.5% last year, four times the rate of inflation. Many young people in my area of rural north Wexford and south Wicklow have to have a car to get to work but are getting punished by these gangsters for driving to work.

Health insurance costs that a lot of people are forced to have - over 2.5 million people in the State have to have private health insurance now - have been hiked by over 50% on pre-Covid levels. Many of those people were those who were already struggling to hold on to their insurance. A lot of people I know are dropping their health insurance and coverage at the moment.

Home insurance costs are crazy. Public liability costs are forcing the closure of businesses and the ending of many community events that make Ireland what it is. Four years ago, in my area, a local children's recreational park in County Wicklow faced closure due to skyrocketing insurance costs, which were hiked from €26,000 to €88,000, which is incredible, despite the company not having made one single claim. Another town in Wicklow that used to hold great summer festivals no longer does so due to the high cost of public liability insurance.

Basically, rocketing insurance costs and burdensome regulations in Ireland are operating in an insurance cartel's paradise. They are ripping the very fabric of Ireland apart. They are ripping society apart. The Government is doing absolutely nothing about it while at the same time letting companies make 17% profit margins.

For over a decade, my colleague here in front of me, Pearse Doherty, and Sinn Féin in general have been producing legislation to end this great insurance rip-off, yet the Government simply will not act on it. I have no idea why. The Government needs to support the legislation tonight, rein in these cowboys, stand up to them, make them accountable and force them to pass on the obscene profits they are making to the people they are ripping off. We are all getting ripped off by this. It is absolutely changing the fabric of Irish society. The Government has to support this legislation tonight.

Dessie Ellis (Dublin North-West, Sinn Fein)
Link to this: Individually | In context

It is a legal requirement in Ireland to have at least third party car insurance to drive on public roads. Of course, it is important that people have car insurance. It acts as a safety net, protecting those insured against significant financial and personal costs, including medical bills and expensive repairs as a result of an accident.

The main contributor to the increasing cost of premiums are personal injury claims. However, figures from the Injuries Resolution Board show that there has been a continuing reduction in the number of motor insurance claims made to the board and that the value of the awards the body has paid out are down by 41% as courts are increasingly using the personal injury guidelines on awards to settle litigated cases. Figures also show that motor accident claims have fallen by 30% over the past six years.

Yet, despite these figures, which show a sharp decline in claims, motor insurance premiums continue to rise. CSO figures show that Irish motor insurance prices rose 11.4% by December 2024 and that premiums had risen for 14 consecutive months by October 2024. In the sixth annual private motor insurance report of the National Claims Information Database, the Central Bank said that the average premium cost per policy increased by 2% in 2023, while insurance companies saw their profits rise by 8%. Most people are reliant on cars for commuting, shopping and other daily activities. Cars are a matter of necessity for many in rural or outlying areas. They are also a necessity for those with disabilities and those who care for them and for the sick and the elderly in communities. Cars are often the only option when there is a lack of reliable public transport. These increases in car insurance premiums are adding to the burden of people struggling in a cost-of-living crisis.

Sinn Féin's Judicial Council (Amendment) Bill 2021 will tackle what is in effect price-gouging by the insurance companies. The Bill will force insurance companies to prove that they have passed on to the consumer any benefits they receive instead of holding on to such benefits to increase their own profits. It is high time the Government allowed this Bill to pass through its Stages and come into law to help families struggling to pay bills in this cost-of-living crisis.

Ruairí Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

I remember as a councillor - Gerry Adams was still the TD for Louth - we met with Michael D'Arcy in relation to public liability insurance and a particular issue we had. I will give him one thing: at the time he said that this was not taken seriously enough at Cabinet level and, even beyond that, even when determinations were made, that you could not trust the insurance companies. The duty of care in legislation has all been carried through. We know some of it will take a period to bed in, but the fact is that until the Government operates the sort of legislation we are talking about here, until their feet are held to the fire, insurance companies are not going to care and they are going to absolutely screw people over. There is no other term you can use.

In the short time I have, I will just deal with an issue in relation to an unexplained increase in the cost of a house insurance premium due for renewal next month. It relates to a home in Dundalk with a €636,000 rebuild sum and contents cover of €51,500. There were no claims on the policy, which was a standard one. The renewal documents an approximate 28% increase on last year. The family paid over €1,000 the year before, but when they changed mortgage provider, the company increased the premium by around €300. When they contacted the brokers, they were offered €1,815.41, and then 10% extra if they paid in instalments. That is a huge increase. When the family said the quote was nearly 30% higher, they were straightaway offered €1,500 to renew, citing a discount. When they asked what the discount was for, the broker said that when the clients rang to query the premium, the insurance company had just authorised the broker to lower it to €1,500. It is what we would expect going on: two-tier price-gouging. Last year's renewal was €1,369, which included the €300 added when the mortgage providers were changed.

On 26 May 2025, a taxi was hijacked in Dundalk. It was a 131 Škoda, worth around €11,000. It was written off by the insurance company for €4,750, but it took out €984 for recovery storage and €1,000 for excess. The man got €2,766.

I do not even have time to deal with travel insurance.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

I thank everybody who spoke in support of the motion. The Government does not have an amendment down. I do not know whether it is opposing the motion or whether it does not have any solutions. The one thing on which I will agree with the Minister of State is that, as he said, what he and the Government are doing is yielding results. He is absolutely spot on. The Government has made bumper profits for the insurance industry, which is absolutely creaming it while sticking the two fingers up to consumers, and indeed the Government.

The case Ruairí outlined is similar to many cases across the State. My motor insurance renewal came in with an increase of 34% - same car, same policy, same issues, no reason for an increase.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

And the Deputy paid a 34% increase?

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

Of course I did not. When you go on the phone and start telling them this, that and the other, you get it reduced. Not everybody is doing that, however, and it should not be-----

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Did the Deputy pay any more?

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

The Minister of State had his speak. It should not be the policy of the Government that you should shop around. The job of government is to defend consumers. What has happened here-----

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Mr. Angry.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

-----is as we and the Alliance for Insurance Reform told the Government, that unless it got a commitment from the industry, the industry would pocket the reforms. That is exactly what has happened. What we have got from this industry - and the Minister of State is absolutely blind to this, as is his Government - are bumper profits. These were reforms I championed, legislation I drafted and got passed in this House and cases I brought to the Central Bank to ban some of the conduct that was there. The industry told us that if we introduced the reforms, it would target a 5% profit margin. What is it doing now? It is taking a 13% profit in public liability insurance.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

What were the companies' profits in 2020, 2021 and 2022?

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

In motor insurance, it is 8%.

The Minister of State talks about Britain. Does he know what has happened there? Does he know what the ABI says about the 28,000 motor insurance policies it looks at every year? It has told us just in recent weeks that insurance has fallen 10%. What has happened under the Government's watch here? An 11.5% increase. People are getting ripped off left, right and centre and the Minister of State stands there reading scripts that the insurance industry would be proud of - that it probably wrote for him.

The Government will not deal with this issue unless the Minister of State recognises that there is a serious issue here in terms of the market. He talked about making submissions. I have done more than make submissions; I have drafted the legislation that would hold the insurance industry to account to make sure that the reforms are not to boost their profits but to be passed on to consumers. The Government - Fine Gael, Fianna Fáil, the Healy-Raes - are blocking that legislation. Why? All I have heard from Minister after Minister leads me to believe that they are basically puppets of the industry. That is why the insurance companies are charging the outrageous prices they are charging sports organisations, festivals, businesses and motorists the length and breadth of the country.

Until we get a Government that will stand up to the industry, this rip-off will continue. It should end now.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

That concludes the debate on Private Members' Business. The question is that the motion be agreed to.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Not agreed.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

Agreed.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

Those in favour say "Tá", those against say "Níl".

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

Tá.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Níl.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

Why?

John McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

I consider that the question is lost.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context

Vótáil. Why? You want to keep the rip-off going, is that it? What bit did you not agree with?

John McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

Do I understand that the Deputy has called a vote? In accordance with Standing Order 85(2), the division is postponed until the weekly division time on Wednesday, 1 October 2025.