John Lahart (Dublin South West, Fianna Fail)
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13. To ask the Minister for Finance if motor insurance premiums are decreasing; and if he will make a statement on the matter. [20548/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.

Motor insurance is the one insurance product that is mandatory, in that every person intending to use a vehicle on a public road must have third-party cover at a minimum. Therefore, it is important that motor insurance is affordable. In that regard, I am pleased to note that data from both the Central Statistics Office (CSO) and National Claims Information Database (NCID) show that prices are falling for private motor insurance.

CSO Consumer Price Index (CPI) data indicates that the price of motor insurance peaked in July 2016 and has since fallen 40 per cent to March 2022, including a decline of 12.1 per cent in the past year. For comparison, the CPI as a whole increased by 6.7 per cent in the same period. The most recent NCID data indicates that the average earned premium per policy peaked at €708 in Q4 2017 and declined 16% to €595 in Q4 2020. I expect that the next NCID report on private motor insurance, due later this year, will show continued decrease in insurance prices.

While the two datasets, from CSO and the Central Bank, should not be compared as ‘like with like’ due to different methodologies used to produce them, both show a similar trend of falling motor insurance premiums in recent years. This is a welcome development taking account of the Government's significant reform agenda that we are implementing through our Insurance Action Plan.

Mairead Farrell (Galway West, Sinn Fein)
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14. To ask the Minister for Finance the status of the work of the Office to Promote Competition in the Insurance Market since its establishment; its terms of reference and objectives; the number of engagements it has had with stakeholders; and the success to date in promoting competition in and attracting new entrants to the insurance market. [21486/22]

Michael Moynihan (Cork North West, Fianna Fail)
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23. To ask the Minister for Finance the details of his work to increase competition in the Irish insurance market; and if he will make a statement on the matter. [20520/22]

Willie O'Dea (Limerick City, Fianna Fail)
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52. To ask the Minister for Finance if he will report on the work of the Office to Promote Competition in the insurance market; and if he will make a statement on the matter. [20566/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 14, 23 and 52 together.

Insurance reform is a key priority for this Government as evidenced by the fact that implementation of theAction Plan on Insurance Reformis overseen by the Cabinet Sub-Group on insurance reform. The second Implementation Report, which was published on 1 March 2022, shows that 80 per cent of the actions contained therein are now been delivered.

The establishment of the Office to Promote Competition in the Insurance Market, which I chair, is a Programme for Government commitment. Its aims are to help expand the risk appetite of existing insurers and explore opportunities for new market entrants in order to increase the availability of insurance. The Terms of Reference are available on the Office’s web page.

Since its establishment, the Office has held over 70 meetings with a range of stakeholders, including insurance companies and representative organisations. During 2021, I met with the CEOs of the major insurance providers in Ireland twice, who confirmed that they are committed to passing on savings from the new Personal Injury Guidelines, and other reforms, to customers. They also reiterated their support for the reform agenda and that they are adhering to the Guidelines in direct settlements with their clients.

The Office has also cooperated with the Central Bank of Ireland to create a databank for new market entrants, which was launched on 8 February. This databank is an additional source of information for insurance providers who are considering entering the Irish market, as it provides ‘one-stop’ access to key sources of information on insurance in Ireland, and showcases the high-quality work being done in data collection by the Central Bank of Ireland, such as the National Claims Information Database (NCID). In addition, the Office is actively working with IDA Ireland to help leverage the ongoing insurance reforms with the aim of targeting new entrants to the Irish market, or persuading current incumbents to expand their existing operations here.

I wish to assure the Deputies of my intention to work with my Government colleagues to ensure further implementation of the Action Plan which should have a positive impact on the affordability and availability of insurance for all consumers.