Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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212. To ask the Minister for Finance if his Department has assessed the disproportionate impact of rising insurance premiums on small and medium-sized businesses in Cork, particularly in the hospitality and retail sectors; and if he will publish any findings. [49849/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Neither I as Minister for Finance nor the Central Bank of Ireland can intervene in the provision or pricing of insurance products. These are commercial decisions taken by insurers in line with EU law, specifically the Solvency II Directive, which sets out the framework for insurance within the Single Market.

However, I fully recognise the concerns of small and medium-sized businesses, including those in the hospitality and retail sectors in Cork, regarding the affordability and availability of cover. Insurance reform remains a central priority for Government, and we have been pursuing a comprehensive programme of reform to improve outcomes for consumers and businesses.

Government have already delivered significant changes through the 2020 Action Plan for Insurance Reform. These included the rebalancing of the duty of care, the introduction of the Personal Injuries Guidelines, and the establishment of the Office to Promote Competition in the Insurance Market. Together, these measures have reduced claims costs, improved transparency, and created the conditions for greater competition in the market.

Of particular importance for the hospitality and retail sectors is the overhaul of the duty of care under the Courts and Civil Law (Miscellaneous Provisions) Act 2023. This reform addresses so-called “slips, trips and falls” claims, which are particularly prevalent in high-footfall sectors, and will reduce the likelihood of such cases proceeding to costly litigation. The Personal Injuries Guidelines are also having a measurable impact, with claims now being resolved more quickly and at lower cost through the Injuries Resolution Board. This is an indication that the Government’s reform agenda is having an impact. More capacity is entering the Irish market, competition has improved, and rates are beginning to fall in a number of segments. For many businesses, particularly SMEs, this means more choice of cover and greater affordability.

Building on this progress, Government published a new Action Plan for Insurance Reform in July 2025. This sets out a further series of targeted actions, including implementing measures to enhance insurance and claims related data through further thematic and sectoral analysis and proactive engagement with international insurers to encourage new market entrants, with the goal of further boosting supply and improving affordability across all sectors.

I wish to assure the Deputy that Government policy remains firmly focused on ensuring that the benefits of reform are realised for businesses and communities. Government will continue to prioritise insurance affordability and availability so that SMEs across Ireland can plan with greater confidence in a more sustainable and competitive insurance market.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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213. To ask the Minister for Finance if he will establish an independent inquiry into the pricing practices of the insurance industry, given the growing concerns of business owners in Cork who report premiums doubling in recent years despite reduced claims. [49850/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, neither I as Minister for Finance nor the Central Bank of Ireland can intervene in the provision or pricing of insurance products. These are commercial decisions taken by insurers in line with EU law, specifically the Solvency II Directive, which governs the operation of the Single Market for insurance.

Nevertheless, I fully acknowledge the concerns raised by small and medium-sized businesses about rising premiums, and see transparency as essential to achieving a fairer and more affordable insurance market. Government has already delivered significant progress in this regard. The establishment of the National Claims Information Database (NCID) has greatly improved oversight of claims costs and trends, helping to identify the true drivers of premium levels.

The Government’s latest Action Plan for Insurance Reform, published in July 2025, also commits to expanding transparency further through faster release of NCID data, the development of a transparency code, a review of the price-walking ban introduced in 2022 and conducting a benchmarking exercise comparing personal injury award levels in Ireland with those in the UK and Europe.

Beyond transparency, the Action Plan contains ten priority actions under six themes, including competitiveness, legal reform, fraud reduction, innovation and skills and climate protection. Key reforms include strengthening the remit of the Injuries Resolution Board to ensure quicker and cheaper resolution of claims, examining the feasibility of a cap on certain categories of personal injury awards, and introducing stronger measures to tackle insurance fraud.

The Government’s comprehensive reform programme is prioritising transparency, affordability, and competition in the insurance market. By expanding data availability, strengthening oversight, and advancing legal and regulatory reforms, Government are working to ensure that savings from reforms are passed on to policyholders. Our priority is to deliver a more sustainable and competitive insurance market so that SMEs all across Ireland can access fairer, more affordable cover and plan with greater confidence.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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214. To ask the Minister for Finance the discussions he has had with the Central Bank on ensuring that the benefits of reduced personal injury awards under recent judicial reforms are passed on to policyholders, particularly in Cork, where many SMEs are reporting no such reductions. [49851/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, neither I as Minister for Finance nor the Central Bank of Ireland can direct the pricing or provision of insurance products. These are commercial decisions for insurers operating under the EU Solvency II framework.

The Government’s reform agenda has delivered substantial changes to reduce claims costs and create the conditions for a more competitive and affordable insurance market. Central to this has been the introduction of the Personal Injuries Guidelines in 2021, which significantly reduced the level of general damages awarded in many cases. The Courts and Civil Law (Miscellaneous Provisions) Act 2023 further strengthened the duty of care, thereby helping to reduce the volume of costly litigation, particularly for “slips, trips and falls” cases that disproportionately affect hospitality and retail businesses.

The Central Bank of Ireland’s National Claims Information Database (NCID) has been an invaluable tool in this regard, providing independent and transparent data on claims costs, settlement channels, and premium trends. The latest NCID report, published in March 2025, on employer and public liability (EL/PL) highlighted that 56 percent of all policies had a premium of €1,000 or less, and 90 per cent of policies had a premium of €5,000 or less. The report also noted that 86 percent of EL/PL policies are ‘packaged’ with cover bought by a wide range of policyholders varying in size and coverage.

Another key focus of the reform agenda was addressing personal injury costs, which historically accounted for about 70% of overall motor insurance claims costs. Thanks to 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 NCID reports show that for Injuries Resolution Board is the fastest and most cost-effective method of resolving personal injury claims for private motor claims and employer’s and public liability claims.

While certain reforms have begun to stabilise award levels, delays in litigation and wider inflationary factors continue to impact premiums. The Programme for Government commits to a comprehensive series of actions aimed at enhancing affordability, availability and transparency across the insurance sector. One of the first steps to deliver on these commitments is the new Action Plan for Insurance Reform, which was published by the Government on 24th July. Key measures include faster release of NCID data, enhanced reporting standards, and ongoing engagement with both domestic and international insurers to encourage greater competition in the market.

Minister of State Troy has recently had meetings with the Central Bank, at Deputy Governor level, to discuss a range of issues including insurance reform. In addition, he 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.

In conclusion, the Government remains focused on the continued reform of the insurance sector to ensure the market remains fair, more affordable and more competitive, so that SMEs across the country can access affordable cover and grow with greater certainty.