The Government today (25 February) welcomed the publication of the National Competitiveness and Productivity Council’s (NCPC) bulletin on insurance costs.
Commenting on the bulletin, the Chair of the Cabinet Committee Sub-Group on Insurance Reform, An Tánaiste and Minister for Enterprise, Trade and Investment, Leo Varadkar TD, said:
Insurance reform is a major priority of mine as Tánaiste and the Minister responsible for enterprise. High insurance costs and the availability of insurance are big problems for businesses all across the country. I am determined to reform the insurance sector so that it works better for businesses, individuals and community and voluntary groups. I welcome this report from the Council and thank them for this important research. We will continue to implement our Action Plan for Insurance Reform, to drive down insurance costs and make Ireland’s insurance sector more competitive and consumer-friendly, supporting enterprise and job creation.
The Minister for Finance, Paschal Donohoe TD, said:
Today’s bulletin is a welcome commentary on the issues that contribute to insurance costs for businesses and the impact that these can have when they go unchecked. I note the NCPC broadly shares the same analysis as Government on this matter. However, I am optimistic that the changes we implement between now and the middle of 2022, under the Action Plan for Insurance Reform, will have a positive impact on businesses. This should help improve our national competitiveness and help contribute to the post-COVID-19 economic recovery.
In addition, the Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Seán Fleming TD, said:
I welcome the publication of today’s bulletin on insurance costs by the NCPC and would like to thank them for their work on this important issue. I would note that the bulletin states that key actions in the Government’s Action Plan for Insurance Reform should lead to lower insurance costs and an increase in the availability of cover. This shows that the Government’s approach to insurance reform is the correct one and our focus will remain on implementing the Action Plan to ensure an improvement in the insurance environment for all consumers, businesses and community groups.
Finally, Minister for Trade Promotion, Digital and Company Regulation, Robert Troy TD said:
The report today is a welcome one and acknowledges the work outlined in the Government’s Action Plan on Insurance. I also wish to welcome its support for reforming and expanding the role of the Personal Injuries Assessment Board (PIAB). Last year I had instructed my officials to develop new legislation concerning PIAB which will widen its scope and develop it functions as regards assessments. Work is progressing on this and I expect to bring proposals to public consultation in the coming weeks. PIAB reform and the full implementation of the Action Plan for Insurance Reform will help to ensure that we have an insurance system which is both affordable and reliable and one which underpins a vibrant economy.
• The NCPC reports to the Taoiseach and the Government, through the Minister for Enterprise, Trade and Employment on key competitiveness issues facing the Irish economy and offers recommendations on policy actions required to enhance Ireland’s competitive position.
• The NCPC makes recommendations to improve the insurance environment in three areas, namely (1) measures that will facilitate the swift adoption of new Personal Injuries Guidelines that will replace the Book of Quantum; (2) measures to enhance and reform the role of the Personal Injuries Assessment Board; and (3) measures to promote competition in the insurance market, as crucial to addressing the issue of high insurance costs and easing the concerns around availability of insurance in Ireland. Actions in each of these areas are included within the Government’s Action Plan for Insurance Reform, which can be accessed here.
• The NCPC’s bulletin and associated press release can be accessed here.
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