Press release
Fourth Insurance Reform Implementation Report published
Published on
Last updated on
Published on
Last updated on
The government has today published the fourth implementation report of the Action Plan for Insurance Reform.
The Action Plan for Insurance Reform, published in December 2020, sets out 66 actions across Government to make Ireland’s insurance sector more competitive and consumer-friendly, supporting enterprise and job creation.
Today’s report shows that 95 per cent, or 63 of the 66 actions, are now considered completed.
Government has prioritised reform of the insurance sector via the Action Plan for Insurance Reform, published in December 2020. This has now largely been delivered, with all of the “principal actions” in place and of the bulk of the actions complete or in progress.
The Sub-Group on Insurance Reform under the Cabinet Committee on Economic Recovery and Investment, chaired by the Tánaiste, with membership from Ministers and Ministers of State, is tasked with driving insurance reform on a cross-governmental approach. The Sub-Group oversees implementation of this ambitious reform agenda.
Government recognises the key role played by insurance, which is why we have committed to continued reform of this key financial services sector under the Action Plan. This Report indicates that the majority of initiatives under this wide-ranging and ambitious reform agenda have now been delivered.
The success of the Action Plan for Insurance Reform has prompted new entrants to the Irish insurance market and helped encourage existing firms to diversify into various sectors as diverse as sports clubs to renewable energy. This has in turn significantly reduced 'pinch-points' in previously underserved areas, connecting businesses with insurance solutions and promoting consistent health and safety standards.
The pace and scale of our reforms has created a positive dynamic which encourages market sentiment and drives increased market capacity. Reforms to the insurance environment have helped shelter Ireland from international pressure of a “hardening” market and to highlight the positive impact of the reforms to industry/sectoral groups.
Over the summer, one of the key “asks” of both the insurance industry and reform campaigners was delivered – the rebalancing of the Duty of Care. The amendments to the Occupiers’ Liability Act 1995 will deliver major benefits to businesses, sporting groups and community and voluntary organisations in particular. The commencement of these legislative changes took place on 31 July 2023.
Additionally, reform of the Injuries Resolution Board (formerly the Personal Injuries Assessment Board; PIAB) is now complete. The third and final phase of the Personal Injuries Resolution Board Act 2022 took effect on 14 December 2023.
Tánaiste, Minister for Foreign Affairs and Minister for Defence, Micheál Martin, said:
"Over the last four years, Government has demonstrated its commitment to addressing the challenges of insurance costs and availability by implementing the Action Plan for Insurance Reform. This comprehensive and whole-of-government strategy significantly enhances affordability and choice for customers. In particular, legislation to reform the Injury Resolution Board and overhaul occupiers’ liability laws are fostering a more competitive landscape.”
Minister for Finance Michael McGrath stated:
“The availability of affordable insurance is vital to facilitate economic activity and the general functioning of wider society. As a small country operating in a highly competitive international insurance market, we must compete with other jurisdictions for capital against the backdrop of a growing multitude of risks driven by developments such as climate change, cyber threats, and geopolitical instability.
“I believe the ongoing market improvement, amidst a backdrop of global inflation and price rises, suggests that these actions have established a firm foundation for change, shielding us from the challenges of a hardening international market.”
Minister of State at the Department of Finance with responsibility for Financial Services, Credit Unions and Insurance Jennifer Carroll MacNeill said:
“I am particularly interested in ensuring that successes achieved under the programme of insurance reform stick, and that they can bring about benefits to individuals and households, as well as businesses, especially when it comes to the availability of insurance and price of cover.
"I will continue to engage with business, with insurance firms and crucially with the Injuries Resolution Board and others to help make sure every aspect of the reform programme is effective.”
Minister of State with responsibility for Trade Promotion, Digital and Company Regulation Dara Calleary added:
“In addition to being a legislative change, the Duty of Care reforms I hope signals the start of a cultural shift surrounding the claims environment and personal responsibility in Ireland, which would bring us more into line with our European Union peers.
“The Injuries Resolution Board has consistently been shown to be a faster, cheaper channel at resolving claims when compared to the courts and it is important that all stakeholders – insurers, the legal sector and plaintiffs – work together to ensure that the vast majority of cases settle there than proceed to costlier litigation."
The Programme for Government contains commitments which together clearly demonstrate the government’s commitment to real reform of the insurance sector to deliver an insurance system which is both affordable and reliable and one which underpins a vibrant economy.
The Sub-Group on Insurance Reform under the Cabinet Committee on Economic Recovery and Investment, chaired by the Tánaiste, with membership from Ministers and Ministers of State, is tasked with driving insurance reform on a cross-governmental approach. The Sub-Group continues to meet on a regular basis to oversee and implement reform and consider the progress that each Minister is making in implementing the specific actions for which they have responsibility.
The Action Plan for Insurance Reform was launched on 8 December 2020. The Action Plan sets out 66 actions for reform to bring down the costs for consumers and business and to introduce more competition into the market.
Actions delivered during 2023 included: