Written answers

Wednesday, 24 March 2021

Department of Finance

Insurance Industry Regulation

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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427. To ask the Minister for Finance if he will review correspondence from a person (details supplied); and if he will make a statement on the matter. [14082/21]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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471. To ask the Minister for Finance if he will review correspondence (details supplied); if he will address the matters outlined; and if he will make a statement on the matter. [14997/21]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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472. To ask the Minister for Finance if he will review correspondence (details supplied); if he will address the matters outlined; and if he will make a statement on the matter. [14998/21]

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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473. To ask the Minister for Finance if he will review correspondence (details supplied); if he will address the concerns highlighted in relation to insurance costs; and if he will make a statement on the matter. [15000/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 427 and 471 to 473, inclusive, together.

I note all the details in the correspondence supplied relates to the recent publication of the Personal Injuries Guidelines and the impact they may have on the cost of insurance. At the outset, insurance reform is a priority for this Government, and the publication of the Guidelines delivers a key element of the Action Plan for Insurance Reform.

The Guidelines significantly reduce award levels for many categories of common injuries, particularly those of soft tissue, and provide further details on how these should be assessed. Also of note is that a number of common injuries will now move to the jurisdiction of the District rather than the Circuit Court, thus reducing the associated legal fees. The Guidelines also provide guidance in relation to injuries previously not included in the Book of Quantum and will be used by both the Personal Injuries Assessment Board (PIAB) and judiciary. Therefore, in addition to the lower awards and legal fees, the Guidelines should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using PIAB to settle claims. This in turn should further reduce the costs of claims, particularly legal fees. Amendments will be advanced through the Family Leave Bill 2021 to allow implementation of these Guidelines as soon as possible.   

My expectation is that insurers will commence reflecting these savings to hard-pressed consumers, businesses and other groups. I have also previously stated that they should increase their risk appetite to extend cover to new market segments or areas they may have withdrawn from in recent years. The insurance industry has previously committed to reduce premiums in line with lower award levels. I n this regard, Minister of State Fleming is meeting the CEOs of the main firms in the coming weeks to hear how they will respond to these recent developments. In addition, I would hope that the improved insurance operating environment may help to attract new entrants into the Irish market.

While I note that some may feel the reduction to award levels does not go far enough, I believe that it needs to be recognised that the revised Guidelines were carefully considered by the judiciary. As such, we will need a period of reflection to assess their implementation and they should be given some time to be applied in practice. 

In summary, the Personal Injuries Guidelines, in conjunction with other strands of the insurance reform agenda, should go some way to improving both the cost and availability of insurance for businesses, consumers, and other voluntary, sporting & community groups. The Deputy can be assured that the Government is committed to achieving a more sustainable and competitive insurance market, and is continuing to progress other aspects of the Action Plan for Insurance Reform.

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