IRB Powers Boosted: Action Plan Targets Insurance Costs
Government Unveils New Action Plan to Tackle Rising Insurance Costs
Dublin, Ireland – The Irish government has launched a new action plan aimed at tackling the persistent issue of insurance affordability, clarity, and availability, especially in the motor insurance sector. The plan, unveiled by Minister of state for Insurance robert Troy and Minister for Enterprise Peter Burke, builds upon previous reform efforts while acknowledging the impact of global inflationary pressures on premium costs.
The latest initiative prioritizes actions expected to yield the most significant impact on the insurance market. Official figures indicate that comprehensive motor insurance now constitutes over 90% of all motor policies. A recent trend shows consumers are increasingly willing to claim on their insurance, even at the expense of their no-claims bonus, driven by rising repair costs. This behavior, the government notes, directly influences overall premium levels.
The advancement of the action plan involved a comprehensive public consultation process, drawing over 70 submissions from a diverse range of stakeholders, including private businesses, political parties, representative bodies, and members of the public.
Minister Troy highlighted that while previous government action plans had successfully reduced insurance costs and improved transparency, the current global inflationary climate has led to an unwelcome resurgence in some costs. ”It is vital that consumers are seeing greater transparency from the insurance sector,particularly in regard to how their premium is communicated to them,” he stated.
The implementation of this new action plan will be spearheaded by Minister Troy through the Department of Finance. Oversight will be provided by the Cabinet Sub-Group on Insurance Reform, chaired by Tánaiste Simon Harris.
Tánaiste Harris emphasized that the government’s latest strategy reinforces the progress made in previous insurance reforms, which have already led to improvements in transparency and a reduction in personal injury awards. “By Government working together, we can deliver tangible progress in this next phase of insurance reform so that the benefits are felt by both businesses and consumers,” he commented.
A key decision preceding the action plan’s publication saw the Cabinet sub-Group on Insurance Reform agree not to seek approval for an increase in personal injury awards, as recommended by the Judicial Council. This move was met with approval from both insurers and consumer groups,who had warned that such an increase would inevitably drive up premium costs.
The Alliance for Insurance reform has “positively acknowledged” the government’s proposals, stating that while further detailed study is required, they recognize the sustained commitment to fostering a fairer and more affordable insurance market. The Alliance pointed to recent reports from the Central Bank and the Injuries Resolution Board as evidence of the success of previous reform programmes, noting substantial decreases in the volume and size of liability claims.
Though, the Alliance also expressed concern that despite record insurer profits, premiums have not seen commensurate reductions. “Policyholders should not have to wait a day longer to see meaningful and sustained reductions in their premiums and any attempt to use today’s action plan as reason not to pass on existing savings,must be pushed back strongly against by government,” they concluded.