Insurance Ireland, the representative body for insurance and reinsurance in Ireland, has today published its pre-budget 2025 submission outlining key issues within the market and calling for a one-stop shop approach to revitalise Ireland’s position as a hub for international insurance and reinsurance.

The submission proposes a targeted strategy to revitalise Ireland as a home for international insurance and reinsurance, as well as strengthening priority areas which will support economic recovery as Ireland continues to navigate economic and social challenges domestically, in Europe and globally.

The six key areas proposed by Insurance Ireland are:

1. Revitalise Ireland as a home for international insurers and reinsurers – develop a strategy to attract investments into the insurance and reinsurance market to the benefit of the Irish and European economy and society.
2. Transparent and Sustainable Pensions Environment – strong consumer protection regulations must be applied to the auto-enrolment system and a level playing field must be established between occupational schemes and auto-enrolment. The Standard Fund Threshold should also be increased in line with wage inflation.
3. Sustainable Finance – Insurance Ireland notes a greater need for public-private partnerships to support comprehensive strategies to adapt to climate, social and sustainable developments.
4. Joined-Up Approach to Financial Literacy – a holistic and coordinated approach to financial education and literacy is needed based on a national strategy and detailed roadmap to address gaps in information and understanding among consumers.
5. Effective Taxation Measures – initiatives to reduce complexity and administrative burden and the cost of doing business, as well as clarity in relation to tax and equalising the taxation treatment of financial products are among crucial factors to fostering an attractive environment for international investment.
6. Removal of BIK for Dental Plans – removal of benefit-in-kind tax on corporate-paid dental insurance benefits would increase participation in corporate dental benefit plans leading to improved oral health outcomes.

Insurance Ireland also outlines a number of other areas where enhancements and consideration is needed to maintain Ireland’s international insurance and reinsurance reputation. These include addressing the access to talent crisis, supporting unregulated and adjacent financial services sector support services, and ensuring the tax-relief at source for private health insurance is maintained.

Speaking on the pre-budget 2025 submission, Insurance Ireland CEO Moyagh Murdock said, ‘In recent years, we have welcomed insurance sector reforms which have brought about great benefits to consumers and businesses. We need to see that progress continued and sustained and we believe there are a number of ways that this can be done; which we have outlined in the Insurance Ireland Pre-Budget 2025 Submission.

Ireland as a jurisdiction has a lot to offer in terms of international investment and as a leading international insurance hub. However, the competitiveness of Ireland in attracting investment from international insurance undertakings is dependent on several factors including Ireland’s access to EU markets, Ireland’s policy and regulatory regime, Ireland’s fiscal regime, and access to relevant skills and expertise, operating costs, among others. 

‘Where challenges arise in any of these key areas, it can have a significant impact on Ireland’s position. At the moment, we’re seeing significant issues with accessing talent. Supports from government around international hybrid models and policy changes that support teleworking could alleviate the access to talent challenges. Investment in unregulated support services requires a focus too in order to drive investment that will strengthen the wider financial services sector and help sustain momentum.

‘So far this year, we have seen uncertainty driven by the continuous geopolitical, economic and social challenges. The cycle of important elections has already kicked off which, in many regions, challenges the political environment which we got used to in the past decades. The European Elections in June and the most recent shock result in the French election will be decisive for the future path of EU integration. Ireland’s success as a small and open economy is based on the EU Single Market and our ability to serve customers across the EU and around the world. The US Elections in November might strongly impact global trade and amplify protectionist policies pushing back against free trade and a global economy, and closer to home the looming general election in Ireland will impact the domestic debate throughout the year.

‘We need to insulate our position as a leading insurance and reinsurance market in Europe and internationally so as to sustain and encourage growth that will benefit consumers and businesses across the country.’

For furt=her information on the Insurance Ireland pre-budget 2025 submission, please visit this link.

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