Insurance Ireland welcomes plans for insurance reform

Written by Michael Griffiths

14/11/2022

Insurance Ireland has welcomed the publication of the third implementation report of the Action Plan for insurance reform.

The group its members have been consistent supporters of insurance reform having collaborated with the Irish government on its Action Plan.

Insurance Ireland stated that reduced costs bring reduced premiums, and that its members remain committed to passing on the benefits of lower costs of claims to customers.

This was evidenced by recent CSO data, which showed a reduction in motor premiums of 43% since July 2016, and 10% in the last year.

“I have always believed that the implementation of necessary reforms and greater stability in the market would deliver clear benefits for consumers,” said CEO of Insurance Ireland, Moyagh Murdock.

“Much has been achieved through the Action Plan to date but it is important that momentum is not lost. It is essential that the outstanding measures are prioritised and completed for the benefit of consumers and the economy.”

Murdock also suggested that the progress made so far should be underpinned not only by the pending legislation on PIAB and the rebalancing of the duty of care, but also increased competition in the market and in the area of business insurance in particular.

“In our view this will result in a more stable and predictable market which will benefit all stakeholders in particular consumers,” Murdock added.

“It is also crucial that we see a strengthening of PIAB’s ability to settle cases so that fewer cases go to the courts where the legal costs add so much to the overall cost of settling claims. As things stand, the proportion of claimants using the PIAB system is worryingly low in spite of the fact that claimants receive roughly the same level of award whether opting for litigation or PIAB.

“We look forward to engaging with and continuing to support the Cabinet Sub-Committee’s Working Group in 2023. It is important the industry is represented in these discussions and we believe we can add value in this regard.”

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