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

241. To ask the Minister for Finance the safeguards in place to address increasing insurance costs across a number of different products, including motor, home and business insurance; the level of oversight that exists on insurance companies; and if he will provide details of the increased premium costs, in percentage terms, in recent years across a number of the main insurance products. [10436/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware, neither I nor the Central Bank of Ireland can interfere with the provision or pricing of insurance products due to the EU Solvency II Directive. However, I wish to highlight the Government’s continued commitment to in the new Programme For Government - Securing Ireland’s Future to publish a new Action Plan for Insurance Reform which will be focused on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance. This will build on the significant progress made under the previous action plan.

According to Central Statistics Office data, in the year to January 2025, motor insurance prices in Ireland increased by 11.2 per cent on average. This recent rise is after a long period of sustained price reductions, and it is important to stress that prices remain 35.2 per cent lower than their peak in July 2016. Additionally, home insurance prices were 8 per cent higher year-on-year. However, it should be noted that the rate of increase has declined substantially from its peak in April 2023, when it reached 23.3 per cent year-on-year.

As a small, open insurance market, Ireland is particularly impacted by international inflationary trends. For example, the last few years has seen the emergence of inflationary pressures in motor insurance. This rise is driven by a combination of external factors, including increased vehicle technology, supply chain disruptions and a tightening labour market, which have raised the cost of repairs. In addition, the factors that underpin home insurance costs, particularly rebuilding costs, materials and labour, have been subject to intense inflationary pressure for some time, which has resulted in an increase in premiums across the market.

It is important to note while as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation, the day to day supervision of insurance undertakings is a matter for the Central Bank of Ireland. The increased availability of data from the Central Bank of Ireland in relation to insurance, and understanding the factors that influence insurance costs, is important in terms of the transparency it provides into the Irish insurance sector. To date, the Central Bank of Ireland has published a number of NCID reports on private motor insurance and employers’ liability, public liability and commercial property insurance. These contain a wealth of information regarding the key insurance markets for consumers and businesses, including data on claims costs and average earned premiums.

Minister of State Troy recently began a round of intensive engagement with Insurance Ireland and the CEOs of the major insurance companies in the State in order to impress upon them the necessity of passing on savings arising from the reform agenda, in the form of reduced premiums. Indeed, we have recently seen a number of new entrants to the market with some existing incumbents expanding their risk appetite to new areas, including hospitality, SMEs and leisure activities.

In conclusion, the Government remains committed to continued insurance reform and the new Action Plan for Insurance Reform, once developed, will support a more sustainable and competitive market through deepening and widening the supply of insurance and delivering tangible benefits to consumers, businesses, and community and voluntary groups across Ireland.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

244. To ask the Minister for Finance if he has outlined at the European Council the need to ensure that the day-to-day supervision of the European Union’s insurance industry remains the exclusive competence of national competent authorities appointed by each member state under national law; and if he will make a statement on the matter. [10495/25]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

245. To ask the Minister for Finance if he will ensure that any measures increasing the powers of the European Insurance and Occupational Pension Authority (EIOPA) regarding cross border insurance sales contain legal guarantees that national parliaments have the right to access all material produced by, or shared with, EIOPA in the exercise of such powers; and if he will make a statement on the matter. [10496/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 244 and 245 together.

As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector.

The European Insurance and Occupational Pensions Authority (EIOPA) is a European Union financial regulatory institution which was established in consequence of the reforms to the structure of supervision of the financial sector in the European Union. It acts as an independent advisory body to the European Commission, the European Parliament and the Council of the European Union. Its mission is to protect the public interest by contributing to the short, medium and long-term stability and effectiveness of the financial system for the European Union economy, its citizens and businesses.

It is important to underline that Ireland has a robust and comprehensive regulatory regime for financial services providers, operated by Ireland's independent regulator, the Central Bank of Ireland. It is responsible for determining what measures or actions need to be taken with respect to regulated financial service providers. The Central Bank of Ireland also has an ongoing engagement with the relevant European authorities in order to ensure common standards are applied consistently. In addition, the Central Bank fully participates in EIOPA to establish high quality common regulatory and supervisory standards and procedures.

Further to such regular engagement at a supervisory level through the Central Bank of Ireland, Ireland has engaged constructively on the recent review of the Solvency II Directive, which examined aspects of EIOPA’s powers in relation to cross-border insurance supervision. Throughout this review, Ireland supported proportionate adjustments to the Solvency II Directive to facilitate sharing of information and cooperation between national regulators, while maintaining the competencies of national supervisory authorities.

More widely, the role of EIOPA must also be considered in the broader discussion on Capital Markets Union (CMU). This is a flagship project within EU financial services policy which aims to deepen and further integrate Europe’s capital markets, support growth and enhance the resilience of the financial system. The Eurogroup (in inclusive format) embarked on a thematic assessment on the future of CMU and in March 2024 issued a statement which sets out priority areas of action and concrete measures for taking forward the CMU. Ireland supports the statement and roadmap set out by the Eurogroup, which provides a solid way forward to develop proposals for legislative measures to progress the CMU.

The Eurogroup statement supports further developing the common rulebook as well as examining a broad range of options to enhance supervisory convergence through a more efficient and effective use of the existing powers of the European Supervisory Authorities and a possible targeted strengthening of their role and governance arrangements. The aim is to deliver a more harmonised enforcement of rules, improving the access to and the attractiveness of EU capital markets and building trust in the single market for EU capital.

Finally, my officials engage with EIOPA both in the various committees and working groups that both the Member States and EIOPA participate in and also bilaterally from time to time. In terms of increasing the powers of EIOPA, there are currently no specific legislative proposals before the Council. However, in relation to any proposals for additional powers for EIOPA my officials will continue to engage on this matter, as appropriate.