283. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance the action being taken to address rising motor insurance premiums; and if he will make a statement on the matter. [26616/26]

313. Deputy Mark Ward asked the Tánaiste and Minister for Finance the steps his Department is taking to tackle the cost of car insurance; and if he will make a statement on the matter. [26738/26]

I propose to take Questions Nos. 283 and 313 together.

Firstly, it is important to highlight that the decision to provide any particular form of insurance cover, and the price at which it is offered, is a commercial matter for insurance companies based on an assessment of the risks they are willing to accept. Neither the Tánaiste and Minister for Finance, nor the Central Bank of Ireland, has the authority to require insurers to provide specific types of cover or to do so at a specified price. This is reinforced by the European framework for insurance (Solvency II Directive).

A key focus of the insurance reform agenda has been reducing personal injury costs, which historically accounted for around 70 per cent of overall motor insurance claims costs. Since the introduction of the Personal Injuries Guidelines and related measures, that figure has now moved closer to a 50/50 split between settled injury cost (46%) and settled damage costs (54%) in 2024. This significant shift has helped shield Ireland from the full impact of global inflationary pressures in the motor insurance sector. These inflationary pressures, which have emerged in recent years, are driven primarily by external factors, including more technologically advanced vehicles, international supply chain disruptions, and increasing labour costs in the repair sector - all of which have contributed to higher repair costs and placed upward pressure on premiums.

Insurance Ireland, the representative body for the insurance industry, has advised that premium calculations are informed by a number of rating factors, which may include where a vehicle is stored, the age of the driver, and their driving experience. Insurers continuously review and analyse relevant data and set their prices based on their own claims experience, with individual companies assigning different weightings to each factor.

Nevertheless, the Government remains firmly committed to delivering measures to reduce insurance costs affecting motorists. This commitment is being progressed through the Action Plan for Insurance Reform 2025–2029. The Action Plan sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved. As part of this, a new Motor Insurance Transparency Code was launched on 2 March 2026. The Code is designed to enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers.

The Government is firmly committed to addressing insurance costs through the implementation of the reforms set out in the Programme for Government and the Action Plan for Insurance Reform. These measures are intended to support the development of a fairer, more sustainable, and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.