Office to Promote Competition in the Insurance Market

Background

The Office to Promote Competition in the Insurance Market (OPCIM) was established in December 2020 under the 2020 Action Plan for Insurance Reform, which emerged as a key deliverable of the Programme for Government at the time. The OPCIM was created to address long-standing challenges in the Irish insurance sector, particularly the lack of competition, the high cost of insurance, and difficulty accessing cover in certain sectors of the economy.

The Office is chaired by the Minister of State for Financial Services, Credit Unions and Insurance and brings together officials from the Department of Finance and the Department of Enterprise, Tourism and Employment. It also engages regularly with stakeholders including the Central Bank of Ireland, IDA Ireland, the Competition and Consumer Protection Commission (CCPC), and relevant industry bodies.

This was the first time Government established a dedicated structure focused exclusively on fostering competition in the insurance market, alongside broader regulatory and legal reforms being pursued across departments.

Role of the Office

OPCIM plays a central role in the Government’s ongoing efforts to improve the functioning of the Irish insurance market. Its objectives include:

1. Promoting Greater Competition Among Existing Insurers
   • Encouraging established insurers to expand product offerings in under-served sectors.
   • Identifying and resolving regulatory or structural barriers that may limit innovation or participation in specific lines of insurance.

1. Attracting New Providers to the Irish Market
   • Working closely with IDA Ireland and other agencies to promote Ireland as a viable market for new entrants, particularly in specialist or digital insurance segments.
   • Supporting interested firms by facilitating access to market insights, regulatory guidance, and inter-agency coordination where appropriate.

1. Advising on Policy and Structural Reforms
   • Supporting the design and implementation of reforms that improve market access and enhance overall competitiveness, within the bounds of EU law, competition rules, and the independent mandates of the Central Bank and other authorities.
   • Coordinating with other workstreams under the Action Plan for Insurance Reform to ensure alignment between legal, regulatory, and market measures.

2020–2025 Action Plan for Insurance Reform

The establishment of OPCIM was a core component of the 2020 Action Plan for Insurance Reform, a cross-Government initiative involving multiple departments and agencies. The Plan outlined a range of measures to reduce insurance costs, increase transparency, reform personal injury law, and improve the claims environment.

The Action Plan specifically tasked OPCIM with spearheading efforts to enhance market competition, recognising that price and availability challenges often stem from limited consumer choice and a lack of product diversity. Over the course of the Plan, OPCIM played a key role in:

• Supporting market access for new providers such as OUTsurance and Revolut
• Facilitating solutions for sectors facing insurance withdrawal or premium escalation (e.g. voluntary and community groups, leisure activities).
• Providing a central coordination point for the Government’s competition-related work in insurance.

Renewed Mandate under the 2025–2029 Action Plan

The 2025–2029 Action Plan for Insurance Reform, launched under the current Programme for Government- Securing Ireland’s Future, recognises that sustained focus is needed to preserve the gains made under the first Action Plan and to address emerging challenges.

Under the new Plan, OPCIM’s role is being expanded to reflect a maturing insurance market and the need to support further innovation and resilience. Key priorities include:

• Establishing a dedicated Sub-Group to support existing insurers in broadening their product ranges, especially in areas where affordability or availability remain concerns.
• Enhancing OPCIM’s engagement with digital and specialist insurers, ensuring that Ireland remains competitive in attracting new forms of insurance provision.
• Monitoring market developments and advising Government on how policy can continue to support a diverse, competitive, and customer-focused insurance ecosystem.

Governance

The Office reports to the Cabinet Committee Sub-Group on Insurance Reform, providing regular progress updates and strategic input on relevant developments. OPCIM’s work is conducted in accordance with EU law, Irish competition law, and with full respect for the independent role of the Central Bank of Ireland in financial supervision and regulation.

Looking Ahead

OPCIM continues to be a vital mechanism through which the Government advances its insurance reform agenda. By promoting healthy market competition, facilitating access for new and existing providers, and advising on policy to improve product availability, the Office supports the broader goal of ensuring affordable and accessible insurance for Irish consumers, businesses, and communities.

Contact Details and Further Information

The Office can be contacted at insurancecompetition@finance.gov.ie

Further information on the Cabinet Sub-Group on Insurance Reform can be found here:

Cabinet Committee Sub-Group on Insurance Reform

The Office to Promote Competition in the Insurance Market

The Office to Promote Competition in the Insurance Market 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. The Terms of Reference and the Work Programmes for 2021, 2022 and 2023 can be found below.