Cabinet Committee Sub-Group on Insurance Reform

Introduction
The Sub-Group on Insurance Reform
The Action Plan for Insurance Reform
Office to Promote Competition in the Insurance Market
Other relevant reports - Cost of Insurance Working Group and Personal Injuries Commission
Central Bank reports and data

Introduction

At the time of the general election in 2020, insurance costs were a significant issue for businesses, motorists, households and a range of sporting, community and voluntary groups.

A stable insurance environment is important for consumers and businesses in the context of enabling our society and our economy to fully function. In this regard, it was important to address elevated pay outs and competitive issues in building an insurance system which is affordable and reliable and underpins a vibrant economy.

The associated suite of reform measures necessary to tackle these issues require a cross-governmental response and this was recognised in the Programme for Government commitments.

The Sub-Group on Insurance Reform

To ensure that the implementation of the government commitments on insurance reform involves a “whole-of-Government” approach, the government has set up a Sub-Group on Insurance Reform within the Cabinet Committee on Economic Recovery and Investment (CCERI).

This was formally established in September 2020 and is chaired by the Tánaiste. Membership includes the Ministers for Finance; Public Expenditure and Reform; Justice; Children, Equality, Disability, Integration and Youth; the Minister for State at the Department of Finance with responsibility for Financial Services, Credit Unions and Insurance; and the Minister for State at the Department of Enterprise, Trade and Employment with responsibility for Trade Promotion, Digital and Company Regulation.

The Sub-Group is meeting on a regular basis to drive this agenda forward and to consider the progress that each Minister is making in implementing the specific actions for which they have responsibility.

The Action Plan for Insurance Reform

The first task of the Sub-Group was the development of an Action Plan, to reflect the commitments made in the Programme for Government, the relevant government departments and agencies/bodies, and the associated timeframes for delivery of the commitments. The Action Plan for Insurance reform was published on 8 December 2020.

The Action Plan highlights a number of principal actions. These are:

commence Consumer Insurance Contracts Act 2019 with most provisions coming into effect from 1 September 2020 and remaining ones to come into effect and be overseen from 1 September 2021
make relevant legislative amendments the Judicial Council Act 2019 to have the Personal Injuries Guidelines adopted by 31 July 2021
the Judicial Council to adopt and publish Personal Injuries Guidelines to replace the Book of Quantum
commence Sections 98 and 99 of the Judicial Council Act 2019. These will provide that: (a) the Personal Injuries Assessment Board (PIAB) will no longer be responsible for preparing a Book of Quantum, and (b) the court shall, in assessing damages in a personal injuries action, have regard to the Personal Injuries Guidelines and, where it departs from those Guidelines, state the reasons for such departure in giving its decision
report on the implementation and early impact of the Personal Injury Guidelines and examine relevant policy response
enhanced role in place and legislative proposals for PIAB reform
taking account of the Programme for Government commitment, make proposals to Government to implement any changes deemed necessary
provide recommendations regarding changes to be made to reduce insurance fraud. This will include examination of penalties for insurance fraud. Implement recommendations including through the introduction of legislation if required
enact and commence the Perjury and Related Offences Bill 2018
examine and provide recommendations regarding changes to ensuring that fraudulent claims are forwarded to the Director of Public Prosecutions. Implement recommendations including through the introduction of legislation where required
legislate to provide for the reform of competition enforcement including the transposition of the ECN+ Directive which makes national competition authorities more effective enforcers. Included in the provisions are a new civil enforcement regime for the CCPC (as well as ComReg) with the power to levy significant administrative sanctions, arrange for statutory immunity and leniency and other measures
examine the Central Bank’s Review of Differential Pricing in the Motor and Home Insurance Markets and take any appropriate actions as deemed necessary in light of the findings of the Central Bank of Ireland in their final report
establish an office within Government to encourage greater insurance market competition

Read the Action Plan.

Read the press release.

All of the principal actions have now been completed. There have been four Action Plan Implementation Reports to date. The most recent Implementation Report is available below:

Fourth Action Plan Implementation Report (February 2024)

Any inquiries can be sent to insurance@finance.gov.ie

Office to Promote Competition in the Insurance Market

The Office to Promote Competition in the Insurance Market (OPCIM) was established on 16 December 2020. The Office is under the responsibility of the Minister of State at the Department of Finance, who acts as Chair.

More information about the OPCIM can be found on its website, here .

Other relevant reports - Cost of Insurance Working Group and Personal Injuries Commission

The Sub-Group will also oversee and monitor other related developments, such as outstanding recommendations arising from the Reports of the Cost of Insurance Working Group (CIWG) and Personal Injuries Commission; the Central Bank of Ireland’s Review on Differential Pricing in the Insurance Sector; and the CCPC’s market study on employer and public liability insurance.

Links to these reports can be found here: