Joe O'Brien (Dublin Fingal, Green Party)
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475. To ask the Minister for Finance the efforts being made to ensure that the associated savings will be passed on to the customer by insurance companies on foot of the recent publication of new Judicial Council guidelines for personal injury claims; and if he will make a statement on the matter. [15023/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products. This position is reinforced by the EU Solvency II Directive insurance framework. Consequently, I am not in a position to direct insurance companies as to their business activities, including in relation to how they price premiums.

Notwithstanding the above, the Government’s Action Plan for Insurance Reform contains a range of deliverables in a number of Government Department policy areas. It is intended that the cumulative effect of the implementation of the actions will be to improve the insurance environment, in particular for businesses. One of the key deliverables in this Action Plan was the recent publication of the Personal Injuries Guidelines by the Judicial Council.

The Guidelines significantly reduce award levels for many categories of common injuries, particularly those of soft tissue, and provide further detail on how these should be assessed. 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 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 the 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 should commence reflecting savings to 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. In 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.

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.