'Significant progress in reforming motor insurance market' - Troy

• Central Bank analysis finds motorists could potentially save approximately €300 by comparing insurance quotations.

• Just 9% of surveyed consumers switched insurer at renewal, while 1 in 5 renewed without engaging with their insurer.

• Minister Troy says enhancing transparency and empowering consumers to secure better value is an integral part of Government’s approach to insurance reform.

“We have made significant progress in reforming the motor insurance market,” said Minister of State Robert Troy, TD, as he welcomed a Central Bank of Ireland publication highlighting the potential for consumers to secure better value on insurance premiums by comparing quotations.

Minister Troy has responsibility for Financial Services, Credit Unions and Insurance, and said the report is part of the work to enhance transparency in motor insurance under the Action Plan for Insurance Reform 2025-2029.

The analysis, which examined quotations from eight insurers representing 90% of the Irish private motor insurance market, found significant variations in premiums offered to consumers with identical risk profiles.

The analysis indicates that consumers could save approximately €300 by comparing quotations, and even greater potential savings are available to some higher-risk consumers.

The findings also highlight the importance of greater consumer engagement, as just 9% of surveyed consumers switched insurer at renewal and 20% renew without engaging with their insurer.

Minister Troy said: “Today’s publication highlights the importance of greater transparency in the motor insurance market and the potential for consumers to secure better value.

“We have made significant progress in reforming the motor insurance market in recent years, and premiums are now 37.6% below their 2016 peak, having fallen by 5.4% year-on-year.

“Alongside our work to reduce the cost of insurance, empowering consumers through enhanced transparency is integral to our approach to insurance reform.

“Consumers deserve to understand why their premiums have changed and what they can do to secure better value. That is why we are taking steps to improve transparency across the sector, helping motorists better understand their premiums and compare the options available to them.

“Today’s publication demonstrates why this work matters, with motorists potentially saving approximately €300 by comparing quotations from different insurers.

“As part of our wider work, improving financial literacy will be essential in supporting people to make informed financial decisions, better understand the options available to them and secure better value for their money.”

Enhancing transparency in motor insurance market

The publication forms part of efforts to enhance transparency and consumer engagement in the insurance market under the government’s Action Plan for Insurance Reform 2025–2029.

As part of the work, the Motor Insurance Transparency Code is being rolled out across the industry, providing clearer information to approximately 2.2 million private motor insurance policyholders.

Developed by a working group comprising insurers and intermediaries, with the support of the Department of Finance and the Central Bank of Ireland, the code introduces a new Premium Summary Statement and Market Overview Statement to help consumers better understand their premiums and the options available to them.

A number of participating firms have already begun introducing these statements, and further firms are expected to follow over the coming weeks and months.