Frank Feighan (Sligo-Leitrim, Fine Gael)

I thank the Senator for raising this important issue. I am pleased to address it on behalf of the Minister of State at the Department of Finance with special responsibility for financial services, credit unions and insurance, Deputy Troy, and to give an update on the progress being made under the new action plan for insurance reform. I am sure Senator Nelson Murray will be very aware already of the update I am giving her because she has been a passionate advocate for insurance reform since long before she came into this august Parliament. Also, there is the fact she has raised the issue in every forum possible. I thank her for highlighting this very important issue.

Both the Minister of State, Deputy Troy, and this Government regard insurance reform as a key priority and are determined to take the necessary steps to reduce the cost burden on households, motorists, businesses, and community organisations across the country. Through previous reforms, Government has implemented fundamental changes, including: the rebalancing of the duty of care, which adjusted liability expectations and reduced excessive claims; the reform of the Injuries Resolution Board, giving it a stronger mandate as an alternative to costly litigation; the introduction of the personal injuries guidelines, creating greater consistency and predictability in awards; and enhancements to the national claims information database, transforming the availability of data about costs, premiums, and settlements.

Despite progress on insurance costs in recent years, an inflationary global climate has led to certain costs creeping up again. Greater transparency, affordability and availability of insurance is fundamental to restoring trust and fairness in the insurance market. The action plan for insurance reform, published in July 2025, 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. The Senator herself said that, after all, motorists' costs are still rising and that is quite frustrating. The action plan has 26 actions being led across a number of Departments, ten of which are priority actions. Of the ten priority actions, one has been completed - that of a benchmarking report on personal injuries awards - and the remaining nine actions are progressing well and are currently on track to be delivered within their respective timeframes.

One of the key areas we need to make an impact is transparency. Work has commenced on a transparency code for the insurance industry. The code, when developed, will require insurers to provide simple, understandable explanations of how premiums are formed and what broader factors influence pricing, and ensure customers can receive additional individual information upon request. A working group comprised of industry representatives, the Department of Finance and the Central Bank has been formed to progress this important initiative, and it has met on numerous occasions to work on a draft code. It is my expectation that the code will be finalised by the end of the year. The Senator outlined as well she felt there should be public representatives on that forum and I think that is quite true. Sometimes we set up these groups and they do not take into consideration all of the stakeholders and all of their views, so I will certainly bring that back to the Minister of State.

Another key area is legal reform and addressing the cost of litigated claims. Data from the NCID has shown that the Injuries Resolution Board is the fastest and most cost-effective method of resolving personal injury claims, delivering similar awards for claimants in less than half the time of litigation, with significantly less legal cost. Amending the Judicial Council Act 2019 to make reviews of the personal injuries guidelines more comprehensive and transparent and strengthening the role of the Injuries Resolution Board are key actions in the new plan. Resolving cases outside of court reduces claim costs and settlement times, which should reduce premiums, benefiting all parties.