Written answers
Tuesday, 29 July 2025
Department of Finance
Insurance Industry
Eoghan Kenny (Cork North-Central, Labour)
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651. To ask the Minister for Finance the steps he is taking to ensure consumers will see a reduction in insurance costs, given costs in the sector continue to rise; and if he will make a statement on the matter. [41465/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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Substantial progress has been made under the 2020 Action Plan for Insurance Reform to address issues related to the cost and supply of insurance. This includes the implementation of significant reforms such as the rebalancing of the duty of care, reform of the Injuries Resolution Board, the introduction of Personal Injuries Guidelines, the banning of price walking in the home and motor insurance markets, and the establishment of the Office to Promote Competition in the Insurance Market. These changes helped create a more competitive market, with new providers such as OUTsurance, Revolut, and Fastnet entering the motor insurance sector, and existing insurers expanding their coverage into areas like hospitality, SMEs, and leisure.
A key focus of the reform agenda was addressing personal injury costs, which historically accounted for around 70% of overall motor insurance claims costs. Taking account of the introduction of the Personal Injuries Guidelines and related reforms, that figure has now moved to 44%. This significant shift helped shield Ireland from the full extent of global inflationary pressures. 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.
In this regard, the Government is firmly committed to delivering further action to drive down insurance costs impacting households, motorists and businesses. One of the first steps to delivering this commitment is a new Action Plan for Insurance Reform, which was published on 24th July.
As part of the development of this Action Plan, the Department of Finance undertook a wide-ranging public consultation which received over seventy detailed submissions from a broad spectrum of stakeholders. The Action Plan will advance reform under six key themes: transparency and affordability, competitiveness and availability, legal reform, fraud, climate protection, and innovation and skills. There are also several priority actions, focused on areas where the greatest impact on cost and availability can be achieved.
In conclusion, a key priority for the Government is the delivery of a fairer, more transparent and affordable insurance sector through structural reform and ensuring the long-term sustainability and viability of the Irish insurance market.
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