New government plan aims to lower insurance premiums
Action Plan officially launched by Minister of State for Financial Services, Credit Unions, and Insurance, Robert Troy, and Minister for Enterprise, Tourism, and Employment, Peter Burke
The government yesterday unveiled a new Action Plan on Insurance Reform with a range of priorities aimed at lowering insurance premiums.
This plan covers the remainder of 2025 to 2029 and will build on the progress of the 2020 Action Plan.
The Action Plan focuses on six key themes, each with a range of specific actions to deliver better outcomes for consumers and businesses.
The themes are:
• Transparency and affordability
• Competitiveness and availability
• Fraud
• Innovation and skills
• Climate protection gap
• Legal reform
As part of the development of the Action Plan, a Department of Finance public consultation process received more than 70 submissions from private businesses, political parties, representative bodies, and members of the public.
The content of the submissions contributed to the actions being put forward by government yesterday.
Among the 26 actions, 10 have been considered as priority, and they include a focus on transparency in the sector, particularly in terms of pricing. As part of the priority action, the Department of Finance will begin work immediately with the sector to introduce a Transparency Code.
Other priority actions include strengthening the powers and remit of the Injuries Resolution Board, a feasibility study on a cap for certain categories of personal injuries awards, enhancing the Office to Promote Competition in the Insurance Market, streamlining the authorisation process for new market entrants, and exploring tougher penalties on insurance fraud and measures to reduce the number of uninsured drivers.
Tackling the reliance on litigation when it comes to insurance, particularly for motor insurance claims, is an important element of the proposed Injuries Resolution Board’s reforms. According to the latest data from the NCID on settled private motor claims, it is 22 times more expensive for a claimant to take a claim through litigation rather than through the Injuries Resolution Board, and it takes more than twice as long.
These actions follow the positive impact of the first Action on Insurance Reform including rebalancing of the Duty of Care, reform of the Injuries Resolution Board, introduction of the Personal Injuries Guidelines, enhancement of the National Claims Information Database, and the market entry of three new players (OUTsurance, Revolut, and Fastnet).
The implementation of the Action Plan on Insurance Reform will be led by Minister of State Troy through the Department of Finance and monitored by the Cabinet Sub-Group on Insurance Reform, which is chaired by the Tánaiste.
Reflecting the importance of reducing insurance costs for consumers and businesses, work has already begun on a number of the priority actions with progress expected before the end of the year.
Prior to publication of the Action Plan, the Cabinet Sub-Group on Insurance Reform agreed to not seek approval from the Dáil and Seanad on an increase in personal injuries awards, as recommended by the Judicial Council. This decision, along with the reforms proposed in the Action Plan, underline the priority being placed on reducing costs by this government.
Minister of State for Financial Services, Credit Unions, and Insurance, Robert Troy, TD, stated: “Despite progress on insurance costs in recent years as a result of the government’s previous Action Plan on Insurance Reform, an inflationary global climate has led to some costs creeping up again. That is why this government is acting, with the publication of our Action Plan.
“It is vital that consumers are seeing greater transparency from the insurance sector, particularly in regard to how their premium is communicated to them. A well functioning insurance market is central to a well functioning economy, and this plan is about levelling the playing field for consumers and businesses and allowing insurance companies to operate a fair profit margin so they can continue to innovate and grow.”
Minister for Enterprise, Tourism and Employment Peter Burke added: “I welcome the publication of the new Action Plan for Insurance Reform, in particular its focus on enhancing competitiveness and the availability and affordability of all types of insurance, including business insurance.
"I am also pleased to see further legal reform and the strengthening of the role of the Injuries Resolution Board as priority actions. The Injuries Resolution Board remains the fastest, most cost-effective means of claims resolution and it is essential that their role in bringing clarity and consistency to the personal injuries landscape is maintained and enhanced.”
The full Action Plan is available here.