Tony McCormack (Offaly, Fianna Fail)
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162. To ask the Minister for Finance the steps being taken to address rising insurance premiums; and if he will make a statement on the matter. [38993/25]

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, and 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 the most recent Central Statistics Office data, in the year to June 2025, motor insurance prices in Ireland increased by 7.5 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 34.3 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. Minister of State Troy has also concluded a round of intensive engagement with key stakeholders including Insurance Ireland and the main insurers in the Irish market to set out the Government’s expectation that savings arising from the reform agenda will be reflected via reduced premiums, as well as increased availability of cover.

Notwithstanding this, the Government understands the concerns felt by for consumers, businesses, and community groups. Accordingly, the Programme for Government: Securing Ireland's Future, includes a commitment to develop a new Action Plan for Insurance Reform. The new Action Plan will set out a comprehensive series of targeted measures to improve the affordability, availability, and transparency of insurance. The Cabinet Sub-Group met to consider the draft Action Plan on 9^th July, and the final Action Plan will be agreed at Government level imminently. After that I would expect that we will be in a position to publish the new plan over the Summer period.