Nine months of decreases as new transparency code set to empower two million motorists

Motor insurance premiums in Ireland have fallen for the ninth consecutive month, signaling that major government intervention is beginning to pay off for hard-pressed drivers.

According to the latest data released by the Central Statistics Office (Office) for June 2026, motor insurance costs have experienced a steady, downward trajectory since October last year. Premiums are now down 3.3% year-on-year, positioning them at a striking 36.3% lower than the historical peak recorded in July 2016.

The sustained drop follows the implementation of the government’s ambitious Action Plan for Insurance Reform 2025–2029, launched last July. The strategy, which features 26 targeted actions across themes like affordability, fraud, and legal reform, was introduced to combat a worrying resurgence in insurance costs.

Minister of State with responsibility for Financial Services, Credit Unions, and Insurance, Robert Troy, welcomed the CSO figures, noting that the legislative measures had an “almost immediate impact”.

“Significant work had been done over many years to reduce premiums from their July 2016 peak,” Minister Troy stated. “Unfortunately, we recognised that premiums were beginning to rise again and those gains were being eroded. We took action, and the CSO data showing a ninth consecutive monthly decrease signals that our measures are working.”

However, the Minister warned against complacency, noting that the Cabinet Subgroup on Insurance Reform will maintain a sharp focus on reducing legal fees and personal injury awards through the remainder of 2026.

The positive news for motorists comes ahead of a massive regulatory shift. In the coming months, over two million policyholders are set to benefit from the new Motor Insurance Transparency Code.

Formally announced earlier this year, the Code represents a groundbreaking shift in consumer rights. For the first time in Irish history, insurance providers will be legally required to break down the exact composition of a premium, moving away from opaque pricing models.

Beginning in the third quarter of 2026, consumers will receive a detailed Premium Summary Statement and a Market Overview Statement during quotations and renewals. These documents will clearly outline last year’s premium versus the new quote, highlight the key factors influencing the price, and offer clear risk-mitigation guidance to help drivers lower their costs.

Furthermore, an Annual Market Overview Statement will provide accessible explanations of macroeconomic factors, such as industry-wide repair costs, labour inflation, and injury claim trends, utilising data from the National Claims Information Database (NCID).

Tánaiste and Minister for Finance, Simon Harris, hailed the milestone as an encouraging victory for consumer confidence.

“Today’s figures are encouraging news for motorists and are a clear indication that the Government’s programme of insurance reform is beginning to deliver tangible benefits,” the Tánaiste said, praising Minister Troy’s leadership. “By giving consumers clearer information about how their premiums are calculated... we are improving transparency, strengthening consumer confidence and helping people make more informed decisions.”

Developed by a collaborative working group of industry insiders, the Department of Finance, and the Central Bank of Ireland, the Code sits under the Consumer Protection Code (CPC). Insurance firms are currently undergoing a phased rollout to retrain staff and overhaul documentation. A formal compliance review by the Central Bank is scheduled within the next 18 months.