I thank the Deputy for once again raising this issue and giving me an opportunity to put on record the work that has been done by this Government and the previous Government and the work that is ongoing and, indeed, to thank him for his advocacy in this area. The Government remains fully committed to delivering a fairer, more transparent and affordable insurance market. Substantial progress has been made under the Action Plan for Insurance Reform 2020–2025, which we are building on, and we are finalising a new action plan for 2025 to 2029. This will include a number of targeted actions across a number of key themes. A key focus of our reform agenda has been on addressing personal injury costs, which historically accounted for about 70% of overall motor insurance claims costs. Thanks to the introduction of the personal injuries guidelines and related reforms, that figure has moved closer to a 50:50 split between injury and material damage. This significant shift has helped shield Ireland from the full extent of global inflationary pressures in the motor insurance sector. To put this in perspective, from 2016 to 2024, motor insurance premiums increased proportionally by approximately 65% in the United Kingdom and by around 20% across the eurozone. In contrast, Ireland saw a 34.3% proportional reduction in the average motor insurance premium over that same period. This reflects the impact of sustained reform and a co-ordinated, cross-government approach. These reforms are supported by the national claims information database, which continues to enhance transparency and help identify cost drivers. The forthcoming action plan will build on this progress, identifying greater accountability and transparency in pricing practices and promoting consumer trust. My officials also work closely with the Department of justice on the proposed amendments to the personal injuries guidelines and the Deputy will be aware that the decision taken that they will be laid before the Houses, as required, but that they will not be approved. Our aim remains clear: to support a competitive and sustainable insurance market that delivers fairer outcomes for consumers, businesses and communities across the country.
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Let us be clear. Insurance premiums increased proportionately by about 65% in the UK from 2016 to 2024 and by around 20% across the eurozone. In contrast, Ireland saw a 34.3% proportional reduction in the average motor insurance premium over the same period. I accept that in the last number of years we have seen the change going the other way and that is why there is a commitment in the programme for Government to establish and carry on the work of the Cabinet subcommittee on insurance reform. In the next number of weeks, we will bring forward a new action plan that will build on the work of the previous action plan and will deliver further reductions in the cost of premiums for our consumer. I also accept, and I agree with the Deputy, that we do need to see greater transparency and greater accountability in how insurance companies are setting the prices, and he will see action in the action plan in this regard.
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Again, I highlight the work the Government has done in the last number of years. It has rebalanced the duty of care and enhanced the role of the Personal Injuries Resolution Board. I take the opportunity to once again highlight the positive effect that has had. We are aware that claimants who are going through the Personal Injuries Resolution Board have their claims dealt with twice as quickly as claimants who go through litigation. The cost of legal fees going through litigation is 22 times the cost of going through the resolution board. The critical point for claimants who have a legitimate claim is that they are getting only a marginal difference. We need to see more people going through the Personal Injuries Resolution Board to ensure the cost, the legal fees, is not exorbitantly high. We need to see greater transparency regarding the prices set by the insurance companies. A lot of good work has been done, and when we compare how premiums have increased across the UK and the EU, we have been able to modify that increase by the good work that has been done in the last five years. We will publish a new action plan later this summer-----
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-----and the Deputy will see further actions that will build on the work that has been done.
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