Cormac Devlin (Dún Laoghaire, Fianna Fail)
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110. To ask the Minister for Finance the status of progress to implement the programme for Government commitment to reduce the cost of insurance and increase competition in the market. [31807/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government recognises the concerns felt around the cost and availability of insurance. As such, timely implementation of the Action Plan for Insurance Reform is high on the Government’s agenda. This sets out 66 actions which aim to bring down costs for consumers and business; introduce more competition into the market; prevent fraud and reduce the burden that insurance costs can have on business, community and voluntary organisations.

I would like to note that significant progress has been made to date in this regard. This includes:

The establishment of an Office to Promote Competition in the Insurance Market within the Department of Finance;

The adoption of new Personal Injuries Guidelines by the Judicial Council;

The creation of a public process on enhancing the role of the Personal Injuries Assessment Board (PIAB).

Work is continuing to progress other key actions, such as reforming of the duty of care, strengthening the laws on perjury, enhancing the enforcement powers of the Competition and Consumer Protection Commission (CCPC), expanding the National Claims Information Database (NCID) with a view to publish its first report on employer and public liability insurance, continuing to reform PIAB, and considering issues related to the Central Bank’s upcoming report on differential pricing so that we can respond accordingly.

As the Deputy will be aware, the new Personal Injuries Guidelines came into effect on 24 April. These materially reduce award levels for many categories of common injuries, particularly those of soft tissue. As a result, a number of common injuries will now move to the jurisdiction of the District rather than the Circuit Court, thus reducing associated legal fees. In addition to the lower awards and legal fees, the Guidelines will be used by both the judiciary and PIAB. Accordingly, they should help bring more certainty to claimants and insurers and reinforce the benefits of using PIAB, thereby further reducing the costs of claims.

Another key achievement of the reform agenda is the creation of the new Office to Promote Competition in the Insurance Market . Since its establishment, the Office has held meetings with a wide range of stakeholders including insurance companies, representative bodies, civil society groups and other state regulators on the issues surrounding competition. Minister of State Fleming chairs meetings of the Office which has met on a number of occasions since its establishment and reports on a regular basis to the Cabinet Sub-Group on its progress.

In conclusion, securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention to work with my Government colleagues to ensure the timely implementation of the Action Plan which will have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.