2026-02-10

165. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance for an update on the action plan on insurance reform; and the progress made under the priority actions contained within the plan. [9531/26]

I seek an update on the Government's action plan on insurance reform. This issue continues to be raised with many of us by households, community groups and business still facing very high premiums and, in some cases, finding it difficult to get cover at all. I would like to know where the action plan currently stands, what progress has been made to date and, in particular, whether the priority actions identified within the plan are being implemented.

I thank the Deputy for raising this matter. The Government is progressing the commitments in the programme for Government to further reform the insurance sector in Ireland and ensure transparency, affordability and availability of insurance for all consumers. Significant progress was achieved through the 2020 action plan for insurance reform. Key measures delivered included the introduction of the personal injuries guidelines, legal reforms to rebalance the duty of care and the establishment of the office to promote competition in the insurance market. Those actions helped to create a more competitive market and have supported new entrants into the Irish insurance sector. The Action Plan for Insurance Reform 2025-2029, published in July 2025, is comprised of 26 actions being led across a number of Departments, ten of which are priority actions. Of those priority actions, transparency in the insurance sector is a key priority, with a transparency code for the insurance industry well advanced and to be published in the coming weeks. The code will require insurers to provide simple, understandable explanations of how premiums are formed, what mitigating actions may be available to customers and what broader factors influence pricing. It will also ensure consumers can directly receive additional information, upon request, to better understand the factors impacting their premium. Work is ongoing in the office to promote competition in the insurance market to enhance competition. Meetings have taken place with insurers to address capacity issues. The office has established a speciality forum to explore the speciality insurance sector and examine how Ireland can be effectively positioned and promoted as a leading jurisdiction for speciality insurance business. My Department is also working closely with the Office of Parliamentary Counsel to the Government to progress the right-to-be-forgotten legislation to ensure fair access for cancer survivors to financial services, specifically mortgage protection insurance, and to allow the Bill to progress in the coming weeks. The Government is firmly committed to addressing the cost and availability of insurance through implementing the reforms set out in the programme for Government and the Action Plan for Insurance Reform 2025-2029.

The action plan was pledged as the answer to years of rising premiums and uncertainty for households and businesses. However, as I am sure he acknowledges, my colleagues and I continue to hear from people who have not yet seen any meaningful reduction in their insurance costs despite the reforms that have been announced. Will he set out how the Department is tracking the implementation of the reforms and measuring the impact they are having in practice on insurance customers?

We have seen an increase in car insurance in the past 12 months but that came on the back of reductions over the previous number of years. The previous action plan delivered savings in the motor insurance industry in particular. I acknowledge that some of those gains have started to be eroded. That is why there was a need to introduce a further action plan to continue to build on the progress of its predecessor. The Central Bank collates insurance data on an annual basis, which it makes available. That is how we can track what progress is being made in terms of how insurance premiums were decreasing for a number of years but, sadly, have increased in the past 12 to 18 months. Were it not for some of the actions introduced by the previous action plan, we would have seen significant increases in recent years as a result of market conditions.

While not directly included in the action plan, I have a question about the Central Bank (Amendment) Bill 2025, particularly the right-to-be-forgotten provision for cancer survivors seeking mortgage protection insurance, as alluded to by the Minister of State. Will he confirm that mortgage providers will embrace that provision? Has there been any dialogue, input or feedback from them in this regard?

To be fair to the insurance industry, and we quite frequently stand to criticise it, providers introduced a voluntary code of practice in this area back in December 2023. It was on the back of that voluntary code that we were able to see the difference the right to be forgotten makes to cancer survivors. We have brought forward provisions in the Central Bank (Amendment) Bill 2025 to put that voluntary code on a statutory basis. It is my intention to bring the Bill to Committee Stage within the next couple of months at the very outside. It will make a very real and meaningful difference to people who have survived cancer diagnoses and come out the other side by ensuring they are able to get on with their life and avail of a mortgage. I do not have the figures to hand but in the 12- to 18-month period after the introduction of the voluntary code, something in the region of 1,200 people benefited. It is a really significant improvement and I hope to be in a position to bring the Bill to Committee Stage within the next two months.