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The Government has established an Office in the Department of Finance to encourage greater competition in the Irish insurance sector. The Minister of State at the Department of Finance Seán Fleming TD chaired its first meeting this week to establish its terms of reference.

This Office will develop the Government's ambitious insurance competition reform programme. This will provide a more co-ordinated Government policy approach to market competition aimed at bringing down the cost of insurance premiums, including for motor and home policies. Minister Fleming will report on its work to the Cabinet Committee Sub-Group on Insurance Reform.

Competition in parts of the Irish insurance market has decreased in recent years due to several withdrawals of insurers and curtailment of risk appetite from some sectors. In this regard, the 2020 Programme for Government document includes a commitment to create an Office tasked with encouraging greater competition in the Irish insurance market. Today’s announcement fulfils this.  

Commenting on the establishment of the competition Office, Minister Fleming said:

“I am pleased that this Office has been established. It will provide a more joined up approach across Government and help reduce some of the barriers to greater competition in the sector.  I look forward to working with other Departments, Agencies and the private sector to accomplish the Government’s ambitious insurance reform action plan.”

The Office which will be part of the Department of Finance will be also supported by the Department of Enterprise, Trade and Employment, and will benefit from regular input from other Departments, Agencies and stakeholders as required. These may include the Central Bank of Ireland (CBI), the Competition and Consumer Protection Commission (CCPC); IDA Ireland; the Motor Insurers’ Bureau of Ireland (MIBI); the Personal Injuries Assessment Board (PIAB); the State Claims Agency (SCA); and insurers, such as Irish Public Bodies (IPB) Insurance.

Further details:

• The Office to Promote Competition in the Insurance Market was set up in line with a commitment in the Programme for Government and the recently published Action Plan on Insurance Reform.
• It held its first meeting on Tuesday (15 December 2020), chaired by Minister of State Fleming, and discussed its Terms of Reference and a preliminary work plan for 2021.
• Minister of State Fleming is also writing to the CEOs of insurance companies to canvass their views regarding competition.
• It will meet again in January and will be engaging various other state bodies as well as considering the views of the wider sector.

The Office’s website is here www.gov.ie/en/organisation-information/07d2a-office-to-promote-competition-in-the-insurance-market/, and it can be contacted at insurancecompetition@finance.gov.ie