The entire country is in desperation over the impact of the current national insurance crisis. Our failed insurance market poses a lethal threat to small businesses and consumers. Futures are in jeopardy and jobs are lost. The common denominator is excessive and suffocating premiums. Unjustifiable premiums are causing financial hardship, leading to enormous levels of stress and anxiety. Overzealous and at times impractical health and safety regulations, with associated insurance demands, are quenching community spirit throughout the country. Volunteers are frustrated and disillusioned to witness their free time, their skills and their commitment blown away with insurmountable insurance premiums.

It is no secret that our insurance industry, as structured at present, is crippling many sectors of our society. Similar to the housing crisis, we have an absence of insurance supply, an excess of demand, too little competition and a collapse of affordability. The consumer is a prisoner in a system that is dysfunctional. The consumer is subjected to a legal form of exploitation and extortion. The insurance sector has become expert at manipulating and taking advantage of consumers trapped in a captive market. The consumer is at the mercy of greedy, profiteering multinational insurance consortiums. The public, in a word, is being ransacked by the current insurance regime. In retaliation for excessive costs, everyone, including politicians, have for years been pointing the finger at the insurance companies, solicitors, the legal profession and the Judiciary. Solicitors and barristers are prone to lodging inflated claims in the expectation that, after legal argument, they will succeed in obtaining exaggerated awards.

For the most part, people who make claims have a legitimate case and, when proven, they are entitled to reasonable and adequate compensation. However, in Ireland, we have cultivated a litigation culture that too often appears to reward the chancers and fraudsters. The glaring weakness in claims procedure is placing a huge financial burden on the insurance companies and, ultimately, consumers. The industry has numerous agencies and oversight bodies, which are lamentably ineffective. The Minister of State, Deputy D'Arcy, has made commendable efforts, with initiatives intended to reduce costs and bring fairness and transparency to the sector, but the harsh fact is that he has been obstructed and stifled by vested interests. Given the broad range of practices, the professionals who work the system have a huge financial interest in protecting the status quo. The current system creates a level of coexistence and self-interest that is difficult to penetrate and break down. Sweeping reforms are urgently required. The current situation is unsustainable and there is a need for urgent action to assist the beleaguered consumer.

I thank Deputy Lowry for raising this important issue. I know that the cost of insurance is a huge issue for citizens, businesses and voluntary organisations. We have made some progress in recent years in stabilising the cost of health insurance through lifetime community rating, keeping the cost of home insurance down and reducing the cost of car insurance, which is now down approximately 25% on its 2016 peak. However, we have a huge issue when it comes to reducing the cost of public liability insurance for business and voluntary organisations.

The most recent step the Government has taken to improve the situation is the Judicial Council Act, which is now law. That Act allows for the establishment of the judicial council, which in turn will establish a personal injuries guidelines committee. That committee will draw up new guidelines as to the appropriate awards to be given to people who suffer injury as a consequence of negligence or a failure of duty of care on the part of others. These new guidelines will replace the book of quantum. While we cannot interfere directly in any way with the deliberations of the judicial council and its committees, the objective is to bring the kinds of awards people get for injuries in Ireland more in line with those in other countries. We then expect the insurance industry to respond by reducing premiums.

There is an engagement at present between the Chief Justice and the Attorney General on ensuring that the judicial council is set up before the end of the year. A sum of €1 million has been provided in the 2020 budget for this. This should be more than enough to run a relatively small new public body. I know that the Chief Justice is doing what he can to identify steps which need to be taken to ensure that the council is in a position to hit the ground running once established. I hope that once the new guidelines are in place, and even before then, judges will recognise the importance of having reasonable guidelines and awards that are in line with international norms because high payouts have a real-world impact. This is not just about the plaintiff in question; it is also about the wider impact on society. Very high payments coupled with very high premiums in Ireland are having a real impact. They are causing businesses to close, jobs to be lost and sporting, leisure and musical activities that take place in other countries to be unviable in Ireland. That is wrong, and we need to consider the wider social and economic impact of high awards on people in general.

It is also important to realise that the public is angry at the scale of the profits being made. The scale of profits suggests that the insurance industry has lost its sense of service. Previously, one's insurance broker or insurance agent was a trusted guide; now they increasingly resemble a group of profiteers. What we are looking for is real and substantial insurance reform. The public is looking for timelines and wants to know when there will be effective action. It is important to remember that the worldwide trend is towards significant reductions in premiums. Ireland stands out because the opposite is the case, with alarming increases annually.

Regarding the Government's proposed judicial council, I suggest that the Taoiseach send, with respect to the separation of powers, a polite but stern message to the Judiciary because it is moving on this issue at a pace that could at its kindest be described as stately.

We all share the objective here, which is to reduce the cost of insurance for citizens, businesses and voluntary organisations. We need all players to make a contribution to this objective. I ask the Judiciary to proceed without delay in establishing the judicial council, setting up a personal injuries commission and replacing the book of quantum with a schedule of awards that are more realistic and more in line with those of other countries. We also need the insurance industry to play its part in bringing down premiums and reducing its profit margins. We also have the Garda involved in stepping up its activities relating to the investigation of fraud. The Government has asked the Law Reform Commission to undertake a detailed analysis as to whether we could establish constitutionally sound legislation to cap or limit the amount of damages a court may award. We expect public consultation on that matter later this year. It will be interesting to see what the Law Reform Commission comes up with because if the other reforms do not work, we need to consider the possibility of legislating in this House to limit and cap awards. We should not rule out a referendum down the line if the existing reforms that are planned do not work.