Government Launches New Motor Insurance Transparency Code to enhance Consumer Understanding and Trust
- Foilsithe:
- An t-eolas is déanaí:
Minister of State at the Department of Finance, Robert Troy TD, has today published the Motor Insurance Transparency Code, a priority action under the Action Plan for Insurance Reform 2025–2029. Developed by a working group comprising of insurers and intermediaries, with the support of the Department of Finance and the Central Bank of Ireland, the Code will enhance trust, clarity, transparency, and understanding in how motor insurance premiums are presented to consumers.
Key features of the Code include:
- A new Premium Summary Statement, provided at quotation and renewal, setting out last year’s premium, the new premium, the difference, and the key factors influencing pricing (including levies, risk factors like geographical location, and license type).
- An Annual Market Overview Statement, providing consumers with accessible explanations of broader market conditions affecting premiums, including profit, broker commission, and legal costs.
The Code is voluntary and is open to all insurers and intermediaries selling private motor insurance in the State to adopt, including cross‑border entities.
Along with an overview of their personal risk factors and market trends, consumers will also be given clear guidance on how they can reduce their risk profile and potentially lower their costs.
Minister of State for Financial Services, Credit Unions, and Insurance, Robert Troy TD said:
“This new Transparency Code is a first of its kind for Irish consumers. It will bring further transparency to the market and support consumers to know what they are paying for, and if there are legitimate reasons for why premiums have increased. By insurers and intermediaries explaining premium changes in plain language and providing insight into individual risk factors as well as wider market trends, the Code will empower consumers to make more informed decisions. It is my hope that this Code will enhance switching behaviour and arm consumers with the right information to receive a better motor insurance outcome.
I welcome the engagement from industry and the Central Bank of Ireland in developing and adopting the Code and want to emphasise that a timely and effective implementation from March 2026 will be essential to delivering real benefits for policyholders.”
Speaking today, Tánaiste and Minister for Finance, Simon Harris TD said:
“The publication of the Motor Insurance Transparency Code marks a significant step forward in delivering on the Government’s commitment to greater openness and fairness in the insurance market. The implementation of this Code will help enhance trust, clarity, and transparency across the motor insurance market and consumers will benefit from clear, consistent, and meaningful information about how their premiums are calculated and information on what practical steps they can take to reduce their risk.
The Code has been designed to enhance transparency while ensuring non-disclosure of commercially sensitive information. Implementation of the Code has commenced on a phased basis, and consumers can expect receive the relevant information towards the end of Q3 this year.
The Code seeks to align with relevant disclosure requirements and requirements to inform customers effectively which will apply to insurers and intermediaries under the Central Bank’s revised Consumer Protection Code (“CPC”). The revised CPC comes into effect on 24 March this year and will be legally binding on insurance companies and intermediaries. The Central Bank’s Administrative Sanctions Procedure will be applicable in respect of non-compliance with the revised CPC".
Notes to Editors
Key Features of the Transparency Code
- A new Premium Summary Statement, provided at quotation and renewal, setting out last year’s premium, the new premium, the difference, and the key factors influencing pricing.
- An Annual Market Overview Statement, providing consumers with accessible explanations of broader market conditions affecting premiums, including repair and labour cost trends and developments in injury‑related claims.
- Clear risk‑mitigation guidance to help consumers understand how their behaviour and risk profile can influence their premium.
- A requirement for firms to use clear, plain, and accessible language and provide an online glossary of terms, with staff receiving training on the Code and each firm appointing a Senior Executive with responsibility for compliance.
- Clear general reasons for declined applications, along with guidance on next steps, including the Declined Cases Agreement.
Insurers and intermediaries are now preparing for a phased implementation, and to ensure all quotation, renewal, and market‑related documentation complies with the new standards. The first review of the Code will take place within 18 months, and the Central Bank of Ireland will provide a report to the Minister for Finance in relation to adherence and impact.
Further Details on the Motor Insurance Transparency Code
The Motor Insurance Transparency Code sets out a consistent, structured approach to explaining premium calculations to consumers. It requires insurers and intermediaries to present information in a clear and accessible way and ensures that consumers receive meaningful explanations of the factors that influence pricing. The Code also supports broader consumer protection objectives by giving customers insights into both individual risk and market‑wide trends, supported by publicly available data such as the National Claims Information Database (NCID).
The Code was developed by a working group comprising of insurers and intermediaries, with the support of the Department of Finance and the Central Bank of Ireland, to ensure strong alignment with regulatory requirements without mandating disclosure of commercially sensitive information. Implementation will begin on a phased basis from March 2026, supported by staff training, updated documentation, and strengthened governance. A formal review will take place within 18 months. The Code sits under the Central Bank of Ireland’s Consumer Protection Code (CPC). The CPC is comprised of:
- S.I. No. 81 of 2025, Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Consumer Protection) Regulations 2025;
- S.I. No. 80 of 2025 Central Bank Reform Act 2010 (Section 17A) (Standards for Business) Regulations;
The Central Bank has issued extensive guidance in respect of these S.I.s to assist firms in understanding their compliance obligations.
Background on the Action Plan for Insurance Reform 2025–2029
The Action Plan for Insurance Reform 2025–2029, published in July 2025, sets out a programme of 26 actions aimed at improving affordability, transparency, competition, and availability in the insurance market. It includes 10 priority actions with the greatest potential impact, one of which is the introduction of a Transparency Code for motor insurance.
The Action Plan is structured around six key themes:
- Transparency and affordability
- Competitiveness and availability
- Fraud
- Innovation and skills
- Climate protection gap
- Legal reform
The Plan was informed by a public consultation which received over 70 submissions from businesses, representative bodies, political parties, and members of the public, directly shaping the measures brought forward.