Insurance companies must pass on savings from reduced awards on to their customers – Byrne

Government should ensure that insurance companies pass on savings from reduced award pay-outs over the past two years to their customers, according to Fine Gael Senator Maria Byrne.

Senator Byrne said: “Recent figures from the Personal Injuries Assessment Board (PIAB) show that the overall average award have reduced by 42% since 2020, from €24,000 to just over €14,000.

“The volume of claims is now more than 30 per cent lower than in 2019 and the total value of awards that PIAB assessed in 2021 was €118 million less than in 2019.

“There is no doubt that a raft of reform legislation introduced following work done by the Costs of Insurance Working Group set up by the previous Fine Gael led Government in 2016, is forming the basis for the hugely positive changes we are seeing in the industry today.

“Motor insurance prices are now 40.0% lower than their peak in July 2016, and health and house insurance have also fallen over the past year.

“However we want to see insurance costs for customers reduce even further. Insurers have committed to passing on savings following the introduction of the new personal injury guidelines adopted last year. Government needs to ensure this happens through engagement with industry bodies, and to ensure customers are treated fairly and benefit from the savings in their premiums.

“Insurance reform has been prioritised by Fine Gael in the previous and current Government with the Action Plan for Insurance Reform published in December 2020. Other positive measures include the recent introduction of regulations by the Central Bank to ban price walking for home and motor insurance, which came into effect on July 1.

“This will protect customers who prefer to stay with their current provider from being subject to a ‘loyalty penalty’, while still allowing customers to benefit from discounts from new providers.

“The next action is the reform of the Personal Injuries Assessment Board, which will bring changes to mediation, retaining information, and the disclosure of information to the Gardai to reduce fraud, as well as plans to tighten the Court’s discretion regarding costs in litigation.

“Insurance costs have been highlighted repeatedly as excessive for businesses as well as for households, which is particularly challenging at a time of soaring inflation.

“Reforms in the insurance sector must lead to a continued downward trend in premiums to the benefit of consumers and businesses.”