520. Deputy Danny Healy-Rae asked the Tánaiste and Minister for Finance the reason car insurance renewal quotes are increased even when a person makes no claim (details supplied); and if he will make a statement on the matter. [41592/26]

Neither I, as Tánaiste and Minister for Finance, nor the Central Bank of Ireland, have the power to compel insurers to provide particular types of insurance or to provide it at a particular price. The decision to provide any specific 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. This is reinforced by the European framework for insurance (Solvency II Directive).

Significant reform was implemented under the 2020 Action Plan for Insurance Reform which helped shield consumers from sharper premium increases experienced elsewhere. Between 2016 and 2024, motor insurance premiums increased by approximately 65 per cent in the UK and by around 20 per cent across the Eurozone. In contrast, Ireland experienced a proportional reduction of approximately 34 per cent over the same period.

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, the balance has adjusted significantly. According to the latest National Claims Information Database (NCID) data, settled motor insurance claims costs in H1 2025 were split at approximately 44 per cent for injury claims and 56 per cent for damage claims. This significant adjustment 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 quotes 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.

In terms of the detailed information supplied by the Deputy, it is telling the impact of the consumer pushing back on a renewal quote, seeking alternative quotes and where more competitive, going with the alternative quote. That way greater pressure will be put on insurance companies to be more competitive when pricing their offerings. Enhancing transparency for the consumer plays a role in this as well.

In this regard, the Motor Insurance Transparency Code, launched in March, should enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers. Implementation is currently underway on a phased basis and it is expected that policyholders will begin to see the benefits of the Code, in quotation and renewal documentation from Q3 2026 onwards.

Government will continue to work to secure a sustainable, competitive, fair, and transparent market in Ireland that ensures transparency, affordability, and availability of insurance for all consumers.