Robert Troy (Longford-Westmeath, Fianna Fail)

If the Cathaoirleach will forgive me, even though I am not a Member of this House, it is good to see one of my local councillors and his partner Deirdre up visiting the Dáil this evening. I am glad to say it was not me who was the Minister getting the grilling in the butcher shop during the Seanad campaign. I sincerely thank Senator Nelson Murray and all our colleagues in the Fine Gael group for tabling this important motion on insurance reform, and all those who contributed to the motion in a positive way. It is a privilege to be here in the Seanad this evening to discuss the Government’s plan in this critical area and to hear the contributions of Senators from across the House. Let me be absolutely clear; the Government regards insurance reform as a key priority. We are determined to take the necessary steps to reduce the burden of insurance costs on households, motorists, businesses and community organisations throughout the country.

When we launched the action plan for insurance reform in 2020 we knew we were setting ourselves an ambitious agenda. That plan set out a comprehensive series of actions designed to tackle the structural problems in the insurance market, reduce costs, increase transparency and improve access. Among the most significant reforms we implemented were the rebalancing of the duty of care, helping to bring greater fairness and certainty to liability claims; the major overhaul of the Injuries Resolution Board to speed up settlements and lower legal costs, and I am particularly proud of the role I played in that when I previously served as Minister of State in the Department of enterprise; and the introduction of the personal injuries guidelines, which have brought consistency and predictability to awards, as mentioned by a number of speakers. We delivered structural change to the personal injury claims process, making it more efficient, more cost effective and, above all, more predictable for those seeking redress.

These changes have also improved the attractiveness of our market. Since the introduction of the reforms we have seen new entrants into the Irish motor insurance market such as OUTsurance, Revolut and Fastnet. At the same time, established insurers have expanded their offerings into previously under-served areas like hospitality, SMEs, sports and leisure. That is a strong vote of confidence in the reforms we have delivered and in the potential of the Irish market, which is functioning fairly.

However, we all recognise that we are not yet where we want to be and more needs to be done. Despite the progress made, too many consumers and small businesses are still not feeling the full benefits of these reforms in their pockets. Premiums in some areas remain high and while the trend in motor insurance premiums has, overall, been downward, with prices still 34.4% lower than their peak in 2016, there have been recent increases that are of understandable concern to the public.

It is important to acknowledge that the recent price pressures are not unique to Ireland. They reflect wider global inflationary factors, including higher repair costs due to advanced vehicle technology, ongoing supply chain issues and labour shortages. These cost drivers are real. However, that does not mean we can be complacent. We need to remain focused on tackling domestic cost drivers and ensuring consumers receive the full benefit of the reforms we have implemented. In committing to a new action plan for insurance reform, the Government will build on the work already done and ensure that improvements in affordability, transparency, access and competition continue in this next phase of insurance reform. That is why, earlier this year, I launched a public consultation on the next action plan for insurance reform. I was determined that we would do this very early in the new Government term. This consultation was short, concise and closed in May. It received 73 submissions from a wide range of stakeholders, including public bodies, industry representatives, small businesses, voluntary groups and some political parties. Today's debate will also feed into that public consultation. The submissions were grouped into key themes, namely, transparency and affordability; competitiveness and availability; fraud; innovation and skills; and the climate protection gap.

The feedback was both insightful and constructive. Stakeholders called for continued reform of the Injuries Resolution Board, which I am in favour of, stronger enforcement and oversight and a more formalised role in the review of personal injuries guidelines. Many highlighted the disproportionate legal costs in litigated cases and the need to streamline those costs, particularly in lower value claims. There were calls for greater transparency in how premiums are calculated and for efforts to boost financial literacy around insurance products. We also heard strong support for measures to attract more international insurers into the Irish market, as well as proposals to modernise regulatory processes to support innovation, talent development and the growth of insurtech. My officials are now carefully analysing the consultation feedback and I expect to bring a draft action plan to the Cabinet subcommittee on insurance reform in July. Our aim is to publish the final plan by the summer. This action plan will guide the direction of insurance reform for the coming years, building on progress to date but also addressing the ongoing frustrations that consumers and businesses still experience. An action plan is important because it is measured and we will be held accountable for the actions we have in that plan.

In regard to the judicial review of the personal injury guidelines, this issue has generated significant discussion not only in this House but in many channels over the past number of months. One point I make regarding the proposed 16.7% increase in general damages for personal injury awards is that no decision has been taken. The decision to accept or reject it will not be taken by one particular Minister because it is a whole-of-government decision. While the Government fully respects the independence of the Judicial Council, it is essential that any proposed changes are underpinned by robust evidence. We must understand the broader implications for the insurance ecosystem, including costs for policyholders and the sustainability of the market.

The introduction of the 2021 guidelines was a landmark moment in the reform agenda. The guidelines brought clarity, consistency and a long-overdue realignment of awards with international norms. We are still in the early stages of assessing their full impact and we must proceed cautiously to avoid unravelling the gains made. It was a regrettable step in the most recent legislation to set a review period of three years. The motion now proposes a seven-year period which is much more realistic and would enable the gathering of the robust evidence we are all looking for. We now know from the NCID data that litigated claims carry significantly higher legal costs, approximately 28 times greater than those resolved through the Injuries Resolution Board. These claims also take a longer time to resolve - 5.1 years on average for litigated motor claims versus 2.7 years for claims via the Injuries Resolution Board. The contrast is starker for employer and public liability claims. We must avoid a situation where increasing awards drive a return to higher premiums, slower settlements and more litigation. This would do a disservice to everyone, not least the injured persons. We will continue to engage constructively with the Judicial Council and all stakeholders to ensure the guidelines remain effective and evidence based.

In regard to the right to be forgotten, we are actively examining how we can better support cancer survivors to access insurance on fair terms. The right to be forgotten is a complex but important issue. Too many people who have overcome life-threatening illnesses find themselves locked out of financial services not because of risk but because of outdated policy assumptions. We are working with colleagues across the Government and with industry to explore policy options that ensure equity, compassion and dignity for those affected. This reflects our broader aim that insurance must not only be affordable but accessible to all.

I acknowledge the legislation that was put forward in the previous Seanad by then Senator Ardagh, now Deputy Ardagh, and Senator Clifford-Lee. Senator Kyne mentioned it this evening and requested that it be a priority. I assure Members that it is a priority for me and the Government. I have already met with the Irish Cancer Society and Insurance Ireland in relation to advancing this proposal. It is worth noting that insurance companies have been operating under a voluntary code in this area for the past 12 months. A review was done, the outcome of which we received recently. The outcome was very positive. That has strengthened my hand in terms of bringing this forward as priority legislation later this year.

I will conclude by outlining the three goals I want to achieve during my time in this role. I want to ensure the insurance market works fairly and efficiently for both providers and policyholders. We have to acknowledge that the insurance industry is a substantial employer in Ireland so we need to be fair to providers and policyholders. I will make sure that insurance products are available and accessible, especially for such sectors as childcare, community and voluntary organisations, sports and recreation. The previous speaker acknowledged the good work IPB did in relation to Tidy Towns. That is something I would like to work on further. A colleague on the other side of the House also raised this. There is an opportunity with IPB in the area of playgrounds, community events, festivals, etc. More work needs to be done in that regard, but there is an appetite on the part of IPB to do more. When it has an appetite to do more for less, we will try and support that.

My third goal is that not only will insurance be available for individuals, families and businesses, it will also be affordable. I have started work in this regard. I have met all the CEOs of the various insurance companies in Ireland. I have met the Alliance for Insurance Reform, Insurance Ireland and IPB. We are determined to work on achieving what we set out to achieve. We are on the right path, but we need to build on the momentum that has been created.

I thank the Senator for bringing this motion before the Seanad because it maintains the momentum to which I refer and the focus on this issue. The public expects a system that is fair, fast and functional. With continued collaboration across the Government, the Oireachtas and all stakeholders, I am confident we can deliver a stronger, more competitive and more compassionate insurance market for the future.