Cabinet Committee Sub-Group on Insurance Reform
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From: Department of Finance
- Published on: 8 December 2020
- Last updated on: 24 July 2025
- Introduction
- The Sub-Group on Insurance Reform
- The Action Plan for Insurance Reform
- Office to Promote Competition in the Insurance Market
- Other relevant reports - Cost of Insurance Working Group and Personal Injuries Commission
- Central Bank reports and data
Introduction
At the time of the general election in 2020, insurance costs were a significant issue for businesses, motorists, households and a range of sporting, community and voluntary groups.
The associated suite of reform measures necessary to tackle these issues require a cross-governmental response via the Cabinet Sub-Group on Insurance Reform.
The Government published the first Action Plan for Insurance Reform in December 2020 and this plan delivered tangible progress in reducing costs, increasing transparency, and enhancing competition in the insurance market. Motor insurance premiums have decreased significantly since 2016 and personal injury awards have become more standardised. The reforms have also facilitated new market entrants and supported SMEs, community organisations, and consumers in accessing affordable insurance. However, challenges still remain and premiums have recently started to trend upwards, due to global inflationary pressures.
The 2025–2029 Action Plan, will build on these achievements by prioritising transparency, affordability, competitiveness, legal reform, anti-fraud measures, climate resilience, and innovation.
A stable insurance environment is important for consumers and businesses in the context of enabling our society and our economy to fully function. In this regard, it was important to address elevated pay outs and competitive issues in building an insurance system which is affordable and reliable and underpins a vibrant economy.
The Sub-Group on Insurance Reform
To ensure that the implementation of these commitments takes a “whole-of-Government” approach, the Government re-established the Sub-Group on Insurance Reform in April 2025 within the Cabinet Committee on the Economy, Trade and Competitiveness, chaired by An Tánaiste. Membership includes the Ministers for Finance; Enterprise, Tourism and Employment; Public Expenditure, Infrastructure, Public Service Reform and Digitalisation; Justice; the Minister for State at the Department of Finance with responsibility for Financial Services, Credit Unions and Insurance; and the Minister for State at the Department of Enterprise, Tourism and Employment with responsibility Trade Promotion, Artificial Intelligence and Digital Transformation.
The Sub-Group will meet on a regular basis to drive this agenda forward and to consider the progress that each Minister is making in implementing the specific actions for which they have responsibility.
The Action Plan for Insurance Reform
The Irish insurance market has undergone significant challenges in recent years, requiring a coordinated, all-of-Government response to ensure its sustainability and competitiveness. The aftermath of Brexit saw a shift in international capital, with some insurers exiting the market or reducing their risk appetite. This led to difficulties in securing cover for certain sectors, particularly those involving higher-risk activities. At the same time, broader global market conditions, including a hardening of insurance markets and increasing reinsurance costs, placed further strain on the availability and affordability of cover.
Addressing these challenges required not only improvements to the business environment but also cultural, legal, and behavioural changes. The Government recognised that reform could not simply focus on reducing costs but also needed to rebuild confidence among insurers and consumers alike. Legal costs, high award levels for personal injury claims, and an outdated approach to risk-sharing all contributed to a system that discouraged competition and inflated premiums. To tackle this, a comprehensive insurance reform agenda was launched, focusing on structural and legislative changes to create a fairer, more transparent market.
Office to Promote Competition in the Insurance Market
The Office to Promote Competition in the Insurance Market (OPCIM) was established on 16 December 2020. The Office is under the responsibility of the Minister of State at the Department of Finance, who acts as Chair.
More information about the OPCIM can be found on its website, here.
Other relevant reports - Cost of Insurance Working Group and Personal Injuries Commission
Links to these reports can be found here: