Action Plan for Insurance Reform: Statements
Seanad Éireann — 2026-05-13
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Robert Troy (FF), Longford-Westmeath

I welcome the opportunity to address the House on the action plan for insurance reform 2025-29 and provide an update on progress since its publication in July 2025. The objective of the current reform programme is clear, namely to support an insurance market that is more transparent, competitive and affordable. There are challenging conditions globally that impact on insurance costs locally, yet I am committed to continuing to make a difference to people's insurance premiums.
The current plan builds on the progress made under the 2020 action plan, which delivered significant change, including the introduction of the personal injury guidelines, changes to the duty of care and legislative enhancements to the Injuries Resolution Board. These measures have improved consistency and predictability in the claims environment, reduced compensation levels in important areas and created a more stable basis for further reform. Despite the progress that has been made, too many consumers and small businesses are still not feeling the full benefits of the reforms in their pockets. Premiums in some areas remain stubbornly high. While the trend in motor insurance premiums has overall been downwards, with prices 35.5% lower than their peak in 2016, there have been recent increases which are of understandable concern. However, we have seen successive reductions in insurance premiums over the past four months, as well as reductions in house insurance premiums over the past ten months. I will admit that these reductions are small, but they point towards progress and the success of the Government's reform programme.
It is important to acknowledge that these recent price pressures are not unique to Ireland. They reflect wider global inflationary factors, including higher repair costs due to advanced vehicle technology, ongoing supply chain issues and labour shortages. It is right to be honest with the House today. While we do not know the ultimate impact of the war in Iran, we know global supply chains have been disrupted significantly and sales of more advanced electric vehicles are increasing. These factors are likely to have an impact on premiums through scarcity of parts and higher repair costs. However, we need to remain focused on tackling domestic cost drivers and ensuring consumers receive the full benefit of the reforms we have implemented.
One of the most important areas of ongoing work is addressing the cost of claims. If affordability is to improve in a meaningful and sustainable way, this proportionate cost must be addressed. According to the latest national claims information database, NCID, data for litigated claims that settled for less than €100,000, legal costs represented 47% of the total claim cost or 95% of the compensation cost, on average. The latest NCID data shows that 85% of all personal injury claims in private motor insurance are now being resolved under the personal injury guidelines. For employer's liability and public liability insurance, the figure is 64%. This marks a substantial and continual shift away from the previous book of quantum framework and shows that the reforms introduced in recent years are becoming embedded in the system.
The NCID data also highlights the importance of the Injuries Resolution Board as the State's most efficient and cost-effective mechanism for resolving personal injury claims. Awards made through the board are broadly comparable to those achieved through litigation, while being delivered in significantly less time and at a fraction of the cost. These kinds of cost savings can make an important difference to people's lives. I ask all those engaging with members of the public who need to make a claim to direct them towards the Injuries Resolution Board. It is faster and cheaper and offers a comparable award. I would also like to point out the independence of the NCID data. It is an authoritative source when it comes to claims information and its impact on the entire market.
Some people in the legal profession are attempting to absolve themselves of the role they play in high premiums, but the NCID data is clear when it comes to legal costs. This is something that every insurance customer should know. If people need to make a claim and do so outside of the Injuries Resolution Board, those higher costs will work their way into premiums over time. We need to strengthen the Injuries Resolution Board and put it on a legislative footing which removes the option of litigation in certain cases. This sits under the remit of the Department of Enterprise, Tourism and Employment and I look forward to hearing an update on progress from the Minister, Deputy Burke, at the next meeting of the Cabinet subcommittee on insurance reform at the end of the month.
One area where progress has been made in terms of injuries awards is the work of the Minister, Deputy O'Callaghan, on the proposed Judicial Council (amendment) Bill 2026. The Bill will bring greater consistency and clarity to the review process for personal injuries guidelines, strengthen transparency and ensure that proposed changes are subject to assessment of the wider economic and policy implications.
An important development under the action plan was the publication of the motor insurance transparency code in March. Approximately 98% of the private motor market and 2.2 million policyholders will be covered by the code when it is fully implemented.
This is a significant step forward in improving transparency, trust and consumer understanding. It is the first of its kind in Europe and highlights the fact that we are not just sticking to the status quo but are looking at innovative methods of reform. The code will provide policyholders with a new premium summary statement at quotation and renewal showing the previous premium, the new premium, the difference between the two and the major factors influencing price. It will also provide an annual market overview statement explaining the broader market factors such as legal and repair costs. Implementation is now progressing on a phased basis with consumers expected to begin seeing this information in their quotation and renewal documents from the third quarter of this year. In addition, the code will be formally reviewed within 18 months, with the Central Bank of Ireland reporting on insurance industry adherence to the code and the impact on transparency for consumers. It is my hope that arming consumers with this level of information will improve competition in the market. I am hopeful that we will see greater uptake of switching behaviour, which leads to better deals for consumers.
On the subject of competition, the office to promote competition in the insurance market also continues to play a central role in engaging with insurers, brokers and sectoral representatives to address availability issues and encourage new market entrants. This work has contributed to a significant reduction in long-standing insurance pinch points and new entrants such as OUTsurance and Coverwise. The number of remaining pinch points has now reduced to three, namely, thatched buildings, motorcycle racing and certain aerial activities. Engagement with stakeholders in relation to these areas is ongoing and I will continue to work to increase the availability of insurance for these sectors. In the coming weeks I will be meeting members of the Alliance for Insurance Reform to hear what it is experiencing and to identify where policy can support it.
I also want to note the international dimension of the office to promote competition in the insurance market. To be clear, the objective is to foster a supportive, competitive and sustainable environment for international insurance activity in Ireland. Work will focus on international engagement, market intelligence and development; international positioning; engagement on the authorisation environment for new entrants; and development of speciality insurance. Taken together these work streams provide a focused, evidence-based framework to deepen international participation, enhance competition and support a more dynamic insurance market. This work will be complimented by the next Ireland for Finance strategy which will seek to further highlight Ireland as a global hub for insurance.

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Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted.

Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2026-05-13/debate/main
Retrieved: 2026-08-14T04:54:56+00:00
Sitting date: 2026-05-13