Michael McGrath (Cork South Central, Fianna Fail)
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Insurance reform is a key priority for this Government as evidenced through the implementation of the Action Plan on Insurance Reform as overseen by a specific Cabinet Committee Sub-Group chaired by the Tánaiste. The latest Implementation Report demonstrates that significant progress has been made, with 90 per cent of the actions contained in the Action Plan now being delivered or initiated.

The establishment of the Office to Promote Competition in the Insurance Market in December 2020 was a Programme for Government commitment. Its aims are to help expand the risk appetite of existing insurers and explore opportunities for new market entrants, thus increasing the availability of insurance. The Office, chaired by Minister of State Carroll MacNeill, includes officials from my Department as well as the Department of Enterprise, Trade and Employment.

Since its establishment, the Office has conducted intensive and ongoing engagement with a range of stakeholders, including insurance companies and representative organisations. As part of this, the Office is working closely with IDA Ireland to help leverage the ongoing reforms with the objective of targeting new entrants to the Irish market, or persuading current incumbents to expand their risk appetite. This will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market, such as high-footfall/activity sectors having difficulty in obtaining public liability insurance.

The Office has had success in assisting to remove ‘pinch points’ in the insurance market, with various solutions found for a variety of sectors including childcare, equestrian and inflatable hire. In addition, there have been announcements from new entrants to the market, as well as commitments by existing insurers that they will expand their risk appetite to cover new areas, particularly in the SME space. This is a welcome development and I am hopeful that sectors currently experiencing issues with the availability of insurance will be positively impacted.

Upcoming developments, such as the reform of the “common Duty of Care” (via amendments to the Occupiers’ Liability Act 1995), will further enhance the insurance market by addressing the issue of ‘slips, trips and falls’ which is particularly prevalent in high-risk public-facing sectors.

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

Michael McGrath (Cork South Central, Fianna Fail)
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This Government recognises that insurance fraud is one of several factors that contribute to the cost of insurance. Of course, it is important to remember that the vast majority of insurance claims are genuine and far outnumber the fraudulent cases.

Nevertheless, when it does occur, insurance fraud impacts on all policyholders, by increasing overall costs. That is why as part of the wide-ranging Action Plan for Insurance Reform, Government has included a number of targeted measures to help reduce fraud.

These measures, which are the responsibility of the Minister for Justice, include the establishment of a dedicated Insurance Fraud Coordination Office (IFCO) within the Garda National Economic Crime Bureau (GNECB). The Office was established with the aim of improving cooperation and coordination with the insurance industry, bringing consistency to the handling and investigation of insurance fraud referrals from industry, and improving subsequent referrals to the Director of Public Prosecutions.

I understand that the GNECB is providing training and support to all Garda Divisions in how to investigate fraud. It has also put in place reporting mechanisms between An Garda Síochána and the insurance industry, and has drafted Memorandums of Understanding in association with Insurance Ireland and the Alliance for Insurance Reform.

Separately, the Criminal Justice (Perjury and Related Offences) Act 2021was signed into law in June 2021, representing another tool to help tackle fraud. This places perjury on a criminal footing for the first time, thereby making the offence easier to prosecute. The Act increases the range of options for investigation, prosecution and the penalties on conviction which can be considered for those making false and misleading claims.

It is widely acknowledged that lowering insurance costs requires a multi-faceted approach, targeting several areas, as recognised by the whole-of-Government reform agenda. In summary, the Action Plan for Insurance Reformhas delivered a suite of measures aimed at addressing the factors that influence insurance costs, including fraud.

Alongside actions to reduce fraud, reforms have been implemented in several other key areas, from the Personal Injuries Guidelines, which set new levels for personal injury awards, to legislation to enhance the Personal Injuries Assessment Board.

It is important to note that the impact of reforms takes time to transmit to price levels for a variety of reasons. These can include: uncertainty arising from ongoing legal challenges; the inherent complexity of the insurance sector’s operating environment; or even dynamic, external developments which can determine price or supply in a small market such as Ireland.

It is therefore vital that reforms are given sufficient time to take effect, and are supported by all stakeholders to do so. In this way, I believe that the cumulative impact of the Action Planwill lead to an improved insurance environment for all policyholders, including motorists, homeowners and businesses.