Troy pledges to work to lower insurance costs

Work is in progress to develop a Government action plan to enhance affordability, transparency and competition in the insurance sector, Deputy Robert Troy has confirmed.

Speaking in the Dáil, the Minister of State for Financial Services, Credit Unions and Insurance said there needed to be greater price transparency in the sector and that cost savings must be passed on to consumers.

The Fianna Fáil Deputy was responding to a parliamentary question asked by Sinn Féin TD Pearse Doherty, who expressed his concerns with rising insurance premiums and its detrimental impact on households, community organisations and small businesses.

Deputy Troy, stated that the publication of a new action plan on insurance reform is a Programme for Government commitment.

"The Programme for Government, 'Securing Ireland's Future', commits to a range of insurance sector reforms. Such reform will build on the progress made under the 2020 action plan, which delivered key reforms such as rebalancing the duty of care, reforming the Injuries Resolution Board and introducing new personal injury guidelines. These changes have contributed to a more sustainable market, attracting new competitors like OUTsurance Ireland, Revolut and Fastnet Underwriting and the expansion of coverage to new sectors, including hospitality, SMEs, sports and leisure activities.

"Since its establishment in 2020, the Office to Promote Competition in the Insurance Market which I now chair as part of my ministerial duties, has supported the expansion of insurer risk appetite, creating a more competitive insurance sector.

“In particular, it helped secure insurance availability in challenging areas such as equestrian activities, the hiring of inflatables and childcare by connecting affected groups with relevant stakeholders.

"Since taking up my role, I have commenced a process of engagement with key stakeholders, including Insurance Ireland and major insurers, to ensure reform-driven savings lead to lower premiums and broader coverage.

"Transparency in the insurance market remains a key policy focus. The Government's reform agenda also commits to facilitating faster data release from the National Claims Information Database for private motor, employers' liability, public liability and commercial property insurance to enhance market transparency.

“In this regard, officials will engage with the Central Bank of Ireland to see how to achieve this aim," Deputy Troy said.

Deputy Troy noted that he had invested much time on this particular matter during the lifetime of the previous Government, reaffirming his view that relevant savings must be passed on to consumers.

"It is regrettable that the level of savings we envisaged for consumers has not transpired. If we look at the CSO consumer price index of December 2024, we can see that motor insurance is 35.5% lower than it was at its peak in July 2016.

“It is still too high in many cases. Many reforms have been delivered. There is a commitment in the Programme for Government regarding an action plan on insurance reform.

“We have to ensure that the reforms which have been delivered will result in further reductions in premiums and to identify new reforms that can be initiated to ensure that we have complete price transparency. We all have the same objective, that is, to bring down the cost of insurance for the citizens of this country," Deputy Troy concluded.