Government Plans to Drive Down Cost of Insurance Making a Difference

The government last week published the first implementation report of the Action Plan for Insurance Reform, showing 50% of actions have been implemented in the first 6 months of the plan according to Senator Robbie Gallagher.

“The report shows that the new Personal Injuries Guidelines are having an impact, with

preliminary data from the Personal Injuries Assessment Board (PIAB) indicating that the

average award has decreased by approximately 50%. Furthermore, 78% of PIAB awards

are now €15,000 or less compared to 30% in 2020,” explained Senator Gallagher.

The plan brings down the cost and increases the availability of insurance for not only businesses, but also consumers, and community and voluntary groups.

The success of the plan is only motivating the government to doing more to reduce insurance costs according to the Senator.

"The government will implement an ambitious programme of legislative reform to strengthen PIAB and the CCPC over the coming months and it will enhance the National Claims Information Database, look to publish more frequent data and develop measures in relation to fraud and occupier’s liability," he explained.

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. Implementation is on track with 34 actions already completed and a further 21 actions due to be completed this year.

The main actions delivered to date include:

1. the Personal Injuries Guidelines have been given effect

2. legislation to strengthen the laws on perjury has been enacted

3. legislative proposals to enhance and reform PIAB have been developed

4. the Office to promote competition in the insurance market has been established the scope of the National Claims Information Database has been widened to cover Employer Liability and Public Liability with a first report in this area due next month

"It is the government’s expectation that insurers pass all savings to their customers and

increase their risk appetite by providing insurance to businesses, voluntary groups, and

citizens. I will continue to engage with the insurance industry on this. Addressing the cost and availability of insurance continues to be a priority for the government,” the Senator concluded.