Aindrias Moynihan (Cork North West, Fianna Fail)
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112. To ask the Minister for Finance if he is satisfied that insurance premiums are being successfully reduced for motorists, businesses and other users, in line with the ever-reducing amounts for personal injury awards; and if he will make a statement on the matter. [11327/23]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will appreciate, 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).

Nevertheless, this Government is continuing to prioritise insurance reform through the whole-of-Government Action Plan for Insurance Reform. The Personal Injuries Guidelines – adopted in April 2021 – represent a key achievement of this reform agenda, with recent data from the Personal Injuries Assessment Board (PIAB) indicating that the overall average award has fallen by 38 per cent compared to awards made in 2020 under the Book of Quantum. Given this pace of reform, and the many other measures being implemented, it is necessary for the insurance industry to pass on benefits to its hard-pressed customers.

In that regard, I welcome recent data from the Central Statistics Office (CSO) showing that the price of motor insurance in January 2023 was 9.1 per cent lower than in January 2022, 16.1 per cent lower than April 2021 (when the Guidelines were adopted), and 43.7 per cent lower than its peak in July 2016. This is particularly notable at a time when general inflation level is 7.8 per cent. The fourth National Claims Information Database (NCID) Private Motor Report, which provided data up to the end of 2021, showed some initial insight into the impact of the Guidelines on awards, which was broadly in line with the data released by PIAB.

On insurance for businesses, the CSO does not publish this data, and the National Claims Information Database (NCID) has yet to publish employers’ liability, public liability and commercial property data for 2021 and 2022. I understand that it is the Central Bank’s intention to publish such data for 2021 this year. However, I acknowledge that difficulties remain in this sector and it is the Government’s intention that price reductions seen in the motor sector will have effect across other forms of insurance. Actions that should particularly benefit businesses are the recent Personal Injuries Resolution Board Act 2022–and amendments to the duty of care viathe Courts and Civil Law (Miscellaneous Provisions) Bill 2022.

Minister of State Carroll MacNeill is continuing to meet individually with the CEOs of the eight main insurers in the Irish market to discuss the Government’s reform package. In these meetings, and in ongoing engagement with industry, the Minister of State has consistently stressed the importance of insurers reflecting lower claims costs through reduced premiums. These engagements have been positive, with insurers confirming their commitment to passing on savings from the Guidelines.

Finally, it is important to note that it will take time for the Guidelines to take effect, particularly as there are still a number of pre-existing claims before the Courts which will be assessed under the Book of Quantum, as well as ongoing legal challenges to the Guidelines. In addition, buy-in from all stakeholders is vital if the Guidelines are to have the expected effect, and it will take a period of time for their true impact to be felt. In the meantime, the Government will continue to engage with stakeholders in relation to their use, as well as with the Central Bank with regards to enhancing the NCID to monitor their impact.