The Minister of State with responsibility for Insurance has said savings from reforms of the sector “must be reflected in lower premiums” and “wider availability of cover.”
Robert Troy said consumers will not accept otherwise and he insisted neither will the Government.
Speaking at the launch of the Injuries Resolution Board’s strategic plan for 2025-2029, he said it is “not simply a matter of goodwill; it is about credibility.”
“Insurers cannot argue that claims costs remain too high while refusing to use mechanisms specifically designed to reduce those costs.”
Minister Troy said he believes that insurance companies “can be doing more to pass on savings.”
The Minister of State at the Department of Finance also said that it is “determined to bring greater transparency” to the market.
He said transparency is a key focus of the new Action Plan for Insurance Reform, which was published in July.
Minister Troy said consumers and businesses “deserve to know what they are paying for, and if there are legitimate reasons for why premiums have increased, or indeed if they should be getting a better deal.”
“I believe that insurance companies can be doing more to pass on savings, and transparency plays an important role in that.”
“I am determined to bring greater transparency to the market, and I and my officials have been engaging in recent weeks with the industry and the Central Bank to make that happen,” he added.
Earlier this year, the Judicial Council proposed a 16.7% increase in personal injury awards, but the Government opted not to seek a resolution by the Oireachtas to approve the increase.
“While Government respects the independence of the Judicial Council, it is vital that any changes are evidence-based, with a clear understanding of the effect on claims costs, premiums, and the availability of cover,” said Minister Troy.
“It is also important that the judiciary acknowledges the checks and balances which are fundamental for the effective application of the separation of powers.”
The minister said as part of the new action plan, the Government will introduce legislative changes to make future reviews of the Personal Injuries Guidelines, which were introduced in 2021, “more transparent and data driven.”
“This will ensure clarity for all stakeholders while protecting the hard-won progress of recent reforms.”
“We must avoid a cycle of reforms and improvements that are followed too quickly by reversals,” he added.
Minister Troy said recent comments from the judiciary in terms of operating outside of the guidelines “are unhelpful for both customers and insurance companies.”
“Activity must be evidenced-based, and we all must be on the same page in order to deliver positive change.”
Minister Troy also said it is his view that “we can go further with the remit of the Injuries Resolution Board, ensuring that they are the go-to process for resolving claims, and that litigation is saved for only the most complex of cases.”
He made a direct appeal to insurers to engage actively with the IRB’s mediation service, which he said is available across employer liability claims, public liability claims, and motor liability claims.
“The Government has delivered reform after reform – reducing claims costs, strengthening processes, and giving insurers more predictability.”
“Now, it is your turn to play your part. By consenting to mediate, by approaching cases constructively, and by embracing this process, insurers can reduce their own costs, help stabilise the market, and pass on savings to consumers.”
Minister Troy said if insurers fail to engage, “costs and delays will persist and trust will erode.”
“By actively participating in things like mediation, insurers demonstrate to Government, and to the public, that they are genuine partners in reform.”
On the benchmarking report, carried out by the IRB and Deloitte, that revealed claimants in Ireland are receiving up to 4.9 times more compensation for minor injury awards than in the UK, Mr Tory said the higher level will “find its way back to the consumer through higher premiums.”