Ruairí Ó Murchú (Louth, Sinn Fein)
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704. To ask the Minister for Finance to provide an assessment of the impact of the Duty of Care and PIAB legislation on insurance premiums for customers; and if he will make a statement on the matter. [43446/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The previous Action Plan for Insurance Reform, published in 2020, delivered significant achievements, most notably the rebalancing of the Duty of Care, reforming the Injuries Resolution Board (formerly PIAB) and the introduction of new Personal Injuries Guidelines.

There are clear indications that the market is responding to the Government reform agenda, with insurance now available in previously challenging areas. 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. The Courts and Civil Law (Miscellaneous Provisions) Act 2023 was commenced in July 2023 and in time should help reduce premiums for businesses in these areas through reducing claims proceeding to costly and time-consuming litigation.

Another focus of reform was addressing personal injury costs, which historically accounted for about 70% of overall motor insurance claims costs. Taking account of the introduction of the Personal Injuries Guidelines and related reforms, that figure has moved closer to 44%, showing that the guidelines are having an impact. The most recent Central Bank National Claims Information Database (NCID) reports show that for both private motor and employer’s and public liability claims that the Injuries Resolution Board is the fastest and most cost-effective method of resolving personal injury claims.

In addition, feedback from engagements with 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 clear sign that the Government’s reform agenda is having the desired effect.

The Government is firmly committed in the Programme for Government- Securing Ireland's Future to delivering further action to drive down insurance costs impacting households, motorists and businesses. One of the first steps was the development of a new Action Plan for Insurance Reform, which was published on 24th July. The Department of Finance undertook a wide-ranging public consultation as part of the Plan's development 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, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority for this Government.