Background to the Action Plan for Insurance Reform
Ireland’s journey toward insurance reform began in 2016 with the establishment of the Cost of Insurance Working Group (CIWG), tasked with tackling rising insurance costs. The CIWG produced two major reports, on motor insurance (2017) and employer/public liability insurance (2018), which laid the groundwork for systemic change by recommending greater transparency, reduced legal costs, and improved claims processes.
Building on these findings, Government launched the Action Plan for Insurance Reform in December 2020. Supported by the insurance industry, the plan aimed to create a more competitive and consumer-friendly market. Key reforms included the introduction of Personal Injuries Guidelines in 2021, restructuring of the Injuries Resolution Board, and legislative changes like the Consumer Insurance Contracts Act 2019 and the Courts and Civil Law Act 2023.
By early 2024, 95% of the plan’s actions were either completed or underway. These reforms have already led to measurable impacts, including a 20% drop in average motor insurance premiums between 2017 and 2022, though challenges like high litigation rates and rising repair costs persist.
The 2020 Action Plan delivered significant reforms, including:
- Rebalancing the Duty of Care: This clarified legal responsibilities, reducing excessive liability on businesses and voluntary groups.
- Reforming the Injuries Resolution Board: The Board now handles a broader range of cases, encourages mediation, and reduces legal costs.
- Introducing Personal Injuries Guidelines: These standardised compensation levels, particularly for minor injuries, improving predictability and reducing inflated payouts.
- Enhancing the National Claims Information Database (NCID): This improved transparency and enabled better risk pricing and policy oversight.
In May 2025, Insurance Ireland, along with many other interested parties, submitted a detailed response to a Department of Finance Consultation on a new Action Plan for Insurance Reform. You can find an inforgraphic of what Insurance Ireland sought at the bottom of the page.
Key Actions of the 2025-2029 Plan
Published in July 2025, with forewords from both An Taoiseach and An Tánaitste, the Irish Government’s 2025–2029 Action Plan for Insurance Reform outlines a comprehensive set of actions aimed at improving transparency, affordability, competition, and resilience in the insurance market. These actions are grouped under six strategic pillars and are assigned to specific departments and agencies for implementation.
- Enhancing Transparency and Affordability
Several actions aim to improve how insurance premiums are understood and communicated:
- Transparency Code: A new code will be developed with the insurance industry to clarify how motor insurance premiums are set.
- Data Utilisation: A feasibility study will explore how Central Bank data can be used to enhance transparency.
- Claims Data Improvements: Faster releases from the National Claims Information Database (NCID), sectoral analysis, and the potential introduction of a unique identifier for personal injury cases are planned.
- Legal Cost Data: Access to legal cost data will be examined to better understand cost drivers.
Public awareness campaigns will also be launched to educate consumers on personal injuries, fraud, underinsurance, and climate-related risks.
- Strengthening the Injuries Resolution Board
The Board’s powers will be expanded to:
- Default cases into mediation.
- Allow remittance of claims back to the Board when new evidence arises.
- Award legal fees for cases resolved through the Board.
Research will be conducted to understand why some awards are rejected and to improve acceptance rates. The Board’s research and publication functions will also be enhanced.
- Reviewing Personal Injuries Guidelines
A benchmarking exercise will compare Irish personal injury awards with those in the UK and Europe. Based on the findings, further measures may be introduced to support competitiveness and inform updates to the Guidelines.
- Legal Cost Reform
The Government will:
- Consider applying a scale of fees to civil litigation.
- Develop new guidelines to promote fairness and transparency in legal costs.
- Review the implementation of the price walking ban introduced in 2023.
- Consumer Support and Financial Literacy
A consumer insurance hub will be developed to provide transparent information and improve financial literacy. This will help individuals and businesses better understand insurance products, risks, and pricing.
- Promoting Competition and Market Access
The Office to Promote Competition in the Insurance Market (OPCIM) will be expanded to:
- Engage with underwriters and brokers to broaden insurance offerings.
- Align with competition bodies to analyse market gaps.
- Support new entrants and improve availability in underserved sectors.
Ireland will also engage with EU insurance reforms and promote itself as a destination for international insurers.
- Tackling Insurance Fraud
The Government will explore tougher penalties for fraud and enhance intelligence sharing with An Garda Síochána and the insurance industry. Measures to reduce uninsured driving will also be promoted.
- Supporting Innovation and Skills
To future-proof the sector, the Government will:
- Support alternative risk models and novel insurance products.
- Promote Insurtech and FinTech innovation.
- Work with education bodies to address skills needs and develop talent pipelines.
- Addressing the Climate Protection Gap
Flood insurance is a key focus. Actions include:
- Developing a long-term strategy for flood insurance provision.
- Ensuring that public investment in flood defences is reflected in insurance availability and affordability.
- Exploring incentives like “build back better” schemes and reduced premiums for resilient properties.
Ireland will also engage with EU partners on insurance solutions for natural catastrophes and climate risk.
- Advancing Legal Reform
The Judicial Council Act 2019 will be amended to:
- Adjust the review period for Personal Injuries Guidelines.
- Mandate consultation with the Injuries Resolution Board.
- Clarify Oireachtas oversight of guideline revisions.
Other legal reforms include:
- Exploring caps for minor injuries and a dedicated resolution model for soft tissue claims.
- Legislating a “Right to be Forgotten” for cancer survivors.
- Enhancing the insolvency framework for insurers.
- Implementing pre-action protocols and setting discount and indexation rates for injury claims.
- Advancing recommendations from the Kelly Report to reduce litigation costs and delays.
Insurance Ireland looks forward to working with members, Government, the Central Bank, and other stakeholders to deliver these key actions. Significant progress has been made and the actions outlined in the new plan will ensure Ireland has an environment to support competition and will keep Ireland as an attractive destination for investment, which are key priorities for Insurance Ireland.
Insurance Ireland’s submission to the Action Plan for Insurance Reform consultation
