Michael McGrath (Cork South Central, Fianna Fail)
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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. This position is reinforced by the EU Single Market framework for insurance (the Solvency IIDirective).

Nevertheless, this Government is aware that certain groups are currently facing difficulty in terms of affordability and availability of public liability insurance, and has therefore continued to prioritise the delivery of the Action Plan for Insurance Reform. Significant progress has been achieved on these reforms, with the vast majority of actions now completed, and the remainder ongoing.

Over the summer, one of the key “asks” of both the insurance industry and reform campaigners was put in place – the rebalancing of the Duty of Care. The amendments to the Occupiers’ Liability Act 1995will deliver major benefits to businesses, sporting groups and community and voluntary organisations in particular. This legislation should help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses, particularly those engaged in activity-based / heavy-footfall areas, where claims associated with ‘slips, trips and falls’ are more prevalent.

Other key reforms include the introduction of the Personal Injuries Guidelines, with 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. Another key, complementary action is the Personal Injuries Resolution Board Act 2022, which aims to increase the number of personal injury claims settled through the PIAB, thereby reducing the expense and time associated with personal injuries litigation. This legislation is being commenced in stages, with Minister of State Dara Calleary indicating that the final commencement will be in place before the end of the year. Further actions aimed at lowering costs include measures to reduce fraud, and legislation placing perjury on a statutory footing for the first time.

Minister of State Carroll MacNeill will be meeting again shortly with the main insurers in the Irish market to set out the Government’s expectation that savings arising from this wide-ranging reform agenda will be reflected via reduced premiums, as well as increased availability of cover. In addition, the Office to Promote Competition in the Insurance Marketis 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. Major international insurers have indicated that the pace and scale of our reforms to date is a positive example of Government action. Indeed, we have seen a number of new entrants to the market with more planned in the coming months, which is a vote of confidence in the Government’s reforms and the wider insurance market here.

In my own engagement with industry, including its representative body Insurance Ireland, I have also impressed upon them the importance of insurers increasing their risk appetite, especially to provide cover for small and niche sectors that may be experiencing issues with affordability and availability of public liability insurance.

In conclusion, I wish to assure the Deputy that seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. For my part, I am committed to working with colleagues to complete outstanding reforms, and monitoring their impact, with a view to achieving an improved insurance environment for all policyholders, including those with public liability cover.