2 million insurance policyholders to benefit from Government’s Motor Insurance Transparency Code

It has been confirmed that over 2 million motor insurance policyholders are set to benefit from the Government’s Motor Insurance Transparency Code.

The Motor Insurance Transparency Code was published on March 2 2026, a priority action under the Action Plan for Insurance Reform 2025–2029.

The Code was developed by a specific working group comprising insurers and intermediaries, with the support of the Department of Finance and the Central Bank of Ireland.

Its objective is to enhance trust, clarity, transparency, and consumer understanding in the communication of motor insurance premiums.

Insurance Ireland and Aviva were members of the working group that developed the Code, with Insurance Ireland’s members and Aviva now confirming they have begun implementation.

This represents 98% of the private motor market in gross written premium terms.

This means that 2.2 million motor insurance policyholders in Ireland can expect to receive much greater transparency around the composition of their premium than ever before in the Irish market.

There are two key features of this code.

Firstly, a new Premium Summary Statement, provided at quotation and renewal, setting out last year’s premium, the new premium, the difference, and the key factors influencing pricing (including levies, risk factors like geographical location, and license type).

Secondly, an Annual Market Overview Statement, providing consumers with accessible explanations of broader market conditions affecting premiums, including profit, broker commission, and legal costs.

Implementation of the Code is currently progressing on a phased basis, supported by staff training, updated consumer documentation, and strengthened governance. It is expected that policyholders will begin to see these additional insights in quotations and renewals documents from Q3 2026.

The Code aligns with relevant disclosure requirements and requirements to inform customers effectively which will apply to insurers and intermediaries under the Central Bank’s revised Consumer Protection Code (“CPC”), which came into effect on 24 March this year.

The first review of the Code will take place within 18 months of implementation, and the Central Bank of Ireland will provide a report to the Minister for Finance in relation to its observations of insurers and intermediaries adherence to the Code and its impact.

Minister for State, Robert Troy welcomed the announcement saying, “Enhancing transparency is a central aim of the Government’s Action Plan on Insurance Reform, and consumers deserve to better understand what makes up their motor premium.

“I am very pleased to confirm that over 2 million policyholders are now in scope of the Code, and will start to receive their Premium Summary Statement and Annual Market Overview from July 2026 onwards.

“Giving consumers this extra level of information, which is among the first of its kind in Europe, will allow for better understanding and consumer choice when it comes to motor insurance.

“The Department of Finance and Central Bank of Ireland will continue engagement with industry, via the working group, to monitor the implementation of the Code, in advance of the planned review.”

Insurance Ireland, the representative body for insurance companies in Ireland, also commented on the confirmation.

“Insurance Ireland welcomes the introduction of the Motor Insurance Transparency Code and supports its adoption across the market.

“Insurance Ireland and its members have engaged proactively in its development and will continue to work to support awareness and implementation in the months ahead.”