Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

108. To ask the Minister for Finance if he can outline the short- to medium-term plans by the Government to ensure reductions in premiums for customers for insurance products, particularly public liability insurance; and if he will make a statement on the matter. [21475/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

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, the Government understands that insurance costs remain a significant issue for many groups, and has therefore continued to prioritise targeted reform of this sector, via the whole-of-Government Action Plan for Insurance Reform. The latest implementation report, published in November 2022, indicates that significant progress has been achieved, with the vast majority of actions now delivered and the remainder prioritised for completion.

The Personal Injuries Guidelines represent a key achievement of this reform agenda. Recent data from the Personal Injuries Assessment Board (PIAB) indicates that the overall average award has fallen by 38 per cent compared to awards made in 2020 under the Book of Quantum. It is the Government’s expectation that all savings generated by the Guidelines, as well as the wide range of other measures delivered to date, are reflected in premiums for customers.

In that regard, I welcome recent data from the Central Statistics Office (CSO) showing that the price of motor insurance in March 2023 was 15.9 per cent lower than in April 2021, when the Guidelines were adopted, and 43.6 per cent lower than its peak in July 2016. Separately, the latest National Claims Information Database (NCID) report on motor insurance indicates that the average earned premium decreased by 19 per cent from its peak in Q4 2017, to €575 in Q2 2022.

On insurance for businesses and other groups, including public liability insurance, the CSO does not publish this data. I understand that the NCID expects to publish 2021 data on public liability insurance, as well as employer’s liability and commercial property insurance later this year. However, I acknowledge that certain difficulties remain in this sector. With regards to public liability insurance, data from the Central Bank illustrates that this market has been loss making for a number of years, and consequently insurers may be reluctant to enter into this area. At the same time, this more specialised market segment is closely linked to global insurance trends, and is therefore slower to reflect the changes being delivered through the Government reform agenda than more commoditised products such as motor insurance.

Notwithstanding this, it is the Government’s view that the reform agenda will have effect across other forms of insurance, including public liability insurance for businesses, community and voluntary organisations. Actions that should particularly benefit these groups include amendments to rebalance the duty of care via the Courts and Civil Law (Miscellaneous Provisions) Bill 2022, which is currently before the Seanad, third stage. This would address the issue of ‘slips, trips and falls’, which is particularly prevalent in high-risk/high-footfall areas. This in turn could potentially unlock further liability insurance capacity for businesses and organisations who operate in these sectors.

In conclusion, I wish to assure the Deputy that the Government remains committed to implementing the outstanding reforms, with a view to driving further benefits for motorists, as well as improvements in the cost of insurance for businesses, and community, sporting and voluntary groups.