The cost of insurance premiums will begin to fall this year, a Government Minister has promised. 

Yesterday, the Central Bank revealed in its National Claims Information Database (NCID) liability report that premiums rose a further 8% in 2022.

That same year, the Oireachtas passed the Insurance (Miscellaneous Provisions) Act and then-Taoiseach Micheál Martin said the Government “deserves to be commended” for the work it had undertaken to reduce premiums.

Speaking to Newstalk Breakfast, Minister of State for Trade Promotion, Digital and Company Regulation Dara Calleary said people will see insurance premiums fall “from this year on”.

“We have completed our insurance action plan; 95% of actions are complete by now and we are focusing… on reducing premiums,” he said.

“We’ve completely changed the risk profile of insurance in Ireland as a Government.

“We want to see those changes passed on in reductions to businesses and to citizens.

“That now is our focus; we have focused on the changes to date and we are now very focused on the implementation and I’m sure we’ll get the reductions in premia.”

'Too early to say in terms of litigation'

Minister Calleary said people who pursue claims through the Injuries Resolution Board have seen the cost of awards fall by close to a third.

It is proof, he believes, that the Government’s actions are “beginning to have an impact” on the cost of insurance.

“It’s still too early to say in terms of litigation,” he said.

“But what I’d say to people is if you’re unfortunate enough to be in the situation where you need to make a claim, the quickest way to resolve that claim and the cheapest way to resolve that claim is through the injuries resolution board.

“I’ve just introduced a new mediation service into the Injuries Resolution Board - [it’s] the first time we can offer mediation through the Injuries Resolution Board.

“Again, taking the stress out of the system but also taking the costs out of the system - that is another reason for premia to be reduced.”

'Duty of Care' legislation

Last year, the Oireachtas passed a ‘Duty of Care’ reform which “rebalances the duty of care owed by occupiers to visitors and recreational users”.

Minister Calleary believes this will also help cut the cost of premiums.

“I think with the meditation service in the Injuries Resolution Board, particularly with the change in the Duty of Care legislation that only came into effect in July 2023, those two issues have the ability to completely once again change the profile,” he said.

“We will begin to see premium reductions from this year on.”

The Government promised to reduce the cost of premiums after a number of businesses said the high cost of insurance had forced them to lay off staff.

Main image: Dara Calleary.