Pa Daly (Kerry, Sinn Fein)
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300. To ask the Minister for Finance the measures he is taking to bring down motor insurance premiums; and if he will make a statement on the matter. [26455/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, neither the Minister for Finance nor the Central Bank of Ireland can intervene in insurance pricing or provision under the EU's Solvency II directive. The Government remains fully committed to the continued reform of the insurance sector, ensuring reforms result in lower costs and greater availability of insurance for businesses across Ireland.

The previous Action Plan on Insurance Reform, published in 2020, delivered significant achievements, most notably the rebalancing of the Duty of Care, reforming the Injuries Resolution Board and the introduction of new Personal Injury Guidelines. In addition, in part due to the more attractive operating environment here, new competitors such as OUTsurance, Revolut and Fastnet have entered the motor insurance market, enhancing competition and capacity. Existing insurers have also expanded their risk appetite to new areas, including hospitality, SMEs, sports and leisure activities. This represents a vote of confidence in the reforms enacted and the wider insurance market in Ireland. Maintaining a competitive insurance market is essential to ensuring ongoing access to affordable coverage for businesses, community groups, and consumers alike.

The cost and supply of insurance is a multi-faceted issue. As a small, open insurance market, Ireland is particularly impacted by global inflationary trends on the cost and supply of insurance. According to Central Statistics Office data, in the year to April 2025, motor insurance prices in Ireland increased by 9.7 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 34.4 per cent lower than their peak in July 2016. However, 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.

A new Action Plan for Insurance Reform is being developed with a focus on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance, including motor insurance.

In conclusion, the Government remains fully committed to monitoring the sector, deepening and widening the supply of insurance and ensuring that the benefits of insurance reforms are fully passed on to consumers, businesses, and community and voluntary groups across Ireland..