Ruairí Ó Murchú (Louth, Sinn Fein)
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362.To ask the Minister for Finance to provide an assessment of the State’s ability at attracting more companies offering public liability insurance into the market to ensure savings for policy holders; and if he will make a statement on the matter. [32382/24]

Jack Chambers (Dublin West, Fianna Fail)
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Insurance reform remains a priority for this Government, and is being delivered through the Action Plan for Insurance Reform. The latest Action Plan Implementation Report shows that the vast majority of the plan’s objectives have been either completed or initiated. The importance of the Action Planis highlighted through its oversight by a Cabinet Sub-Group on insurance reform, chaired by the Tánaiste.

There are clear indications that the market is responding to the Government reform agenda, with insurance now available in previously challenging areas such as equestrian activities, inflatable hire, sports clubs, play centres, and SMEs. Key to this was the overhaul of the duty of care, the policy intent of which was to address ‘slips, trips and fall’ type claims, which are prevalent in the activity-based or heavy-footfall sectors. In time, this legislation should help reduce premiums for businesses in these areas as it is intended to reduce claims proceeding to costly and time-consuming litigation.

Minister of State Richmond is currently meeting the CEOs of the major insurance companies to continue to stress the Government’s expectations that they will pass on any savings accrued from the package of insurance reforms to consumers in the forms of lower premiums and expanded risk appetite. In addition, feedback from engagements with other insurance stakeholders is indicating that public liability insurance issues are showing signs of some easing, with more capacity entering the market and insurance rates being reduced. This is a sign that the Government’s reform agenda is having the desired effect.

In conclusion, I want to assure the Deputy of the Government’s commitment to the ongoing implementation of the Action Plan for Insurance Reform, ensuring the availability and affordability of this essential financial service to businesses, households and individuals across Ireland.

Ruairí Ó Murchú (Louth, Sinn Fein)
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363.To ask the Minister for Finance to provide an assessment of the impact of the duty of care and Personal Injuries Assessment Board legislation on insurance premiums for customers; and if he will make a statement on the matter. [32383/24]

Jack Chambers (Dublin West, 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, 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).

Insurance reform remains a priority for this Government and much has been done to deliver such reform. The Government's Action Plan for Insurance Reformsets out our reform agenda, with the vast bulk of the actions it contains are now either delivered or initiated. This level of progress will bring benefits to individuals, businesses and households alike. The implementation of the Action Plan is overseen by a Cabinet Committee Sub-Group on Insurance Reform, chaired by the Tánaiste. Nevertheless, Government is aware that some groups continue to face difficulty in terms of affordability and availability of certain insurance lines.

Accordingly, Minister of State Richmond is continuing to engage directly with insurers to ensure savings from reforms translate into lower premiums and increased coverage availability. The entry of new insurers and expansion of existing ones into new areas indicates confidence in these reforms. Despite a hardening global insurance market, domestic reforms aim to enhance Ireland’s competitive edge in attracting international insurance capital.

The aforementioned Government's Action Plan for Insurance Reformhas included significant achievements since 2020, most notably the rebalancing of the Duty of Care in July 2023, reforming the Injuries Resolution Board (formerly PIAB) and introducing the new Personal Injury Guidelines. These will benefit all insurance lines including, personal, commercial and liability cover.

The Personal Injury Guidelines (PIGs), introduced in April 2021, aim to stabilise personal injury awards and reduce high insurance premiums. Insurance premiums are also influenced by multiple dynamic factors, including risk, business costs, litigation and reinsurance, so reduced personal injury awards may not directly translate to lower premiums on a euro-for-euro basis. Although reduced awards at the Injuries Resolution Board are evident, litigation delays mean court judgments have yet to fully reflect these changes. Accordingly, industry experts suggest it may take twelve to eighteen months post the Delaney judgement for Personal Injury Guidelines award levels to be reflected at a Court level. Limited data from the Court Service complicates a thorough impact analysis.

The Central Bank’s National Claims Insurance Database shows that employer/public liability insurance has recently returned to profitability after years of losses. Business insurance premiums can also be affected by factors such as construction inflation, increased turnover, staff, visitor numbers, and other non-personal injury related insurance costs.

The Government’s focus remains firmly on ensuring that the benefits arising from the entire reform programme are realised, for consumers, businesses, and community and voluntary groups.