Latest news with #ActionPlanforInsuranceReform
Extra.ie
a day ago
- Business
- Extra.ie
Minister lashed for plans to raise personal injury claims by 17%
Government TDs and business lobby groups have slammed plans to allow a 17% personal injury claims hike by the judiciary, warning it would 'wipe out' any progress in reducing insurance premiums. In a statement, the Irish Small and Medium Enterprises Association (ISME) strongly criticised Justice Minister Jim O'Callaghan, who is set to bring a memo to Cabinet next week to legislate for the increase. ISME claimed that Fianna Fáil TD Mr O'Callaghan's support for the increase is 'a capitulation to vested legal interests and undermines years of work to bring down insurance costs for SMEs and consumers'. Minister Jim O'Callaghan. Pic: Leah Farrell/ Fianna Fáil and Fine Gael backbenchers also expressed concern over the proposal. One TD in Fine Gael, which currently holds the Enterprise brief at Cabinet, said the move 'is not at all in line with the Government's focus on reducing the cost of business'. Last week, it emerged that the Minister for Justice will seek Cabinet approval to begin drafting legislation to increase personal injury awards by 16.7%. The proposed hike, which will reportedly be brought before ministers on July 8, is based on a recommendation from the Judicial Council. The board of the council, an independent body representing judges across Ireland, is required by law to review personal injury guidelines every three years. The group proposed in December that payouts should increase by 16.7%, citing 'significant global and national inflation' in the period since the last review. Pic: Gareth Chaney/Collins Photos The recommendation was adopted by the council at large in late January and passed over to Mr O'Callaghan, who must put the amendments before the Houses of the Oireachtas for approval. The memo from the minister will come following sustained pressure on the Government to bring down the cost of premiums, with officials in the Department of Finance currently working on an updated Action Plan for Insurance Reform. ISME said the hike 'would lead to increases in insurance premiums for both businesses and consumers' and 'further reward a legal industry already profiting from vexatious litigation and huge personal injury payouts'. Neil McDonnell. Pic: Sasko Lazarov / The association said: 'Ireland also has 14 times more personal injury cases than England and Wales, with a population 12 times smaller.' The group's chief executive, Neil McDonnell, called the proposed rise 'indefensible' and said: 'Insurance costs have not fallen following previous reforms, and now the Government wants to undo the little progress that has been made. SMEs and voluntary groups will bear the cost while legal firms walk away with bigger fees. 'Minister O'Callaghan will have to make a decision based on social good, not on the desire to maintain legal earning power.' He also called for the Justice Minister to remove the judiciary from the job of setting the amount of awards and delegate it to an independent expert body such as the Injuries Resolution Board or the Workplace Relations Commission. Discontent is also brewing in the Oireachtas, particularly among members of Fine Gael, which is endeavouring to be seen as the 'pro-enterprise' party in the Dáil. Numerous Fianna Fáil sources also indicated discontent in the Justice Minister's own ranks and questioned whether the legislation to give way to the 16.7% hike needed to be brought forward in the coming weeks. Cork TD Séamus McGrath said the Government must do everything in its power to 'put a downward pressure' on insurance costs. 'The proposal to increase personal injury awards needs to be considered very carefully, and I will be raising my own concerns about the reported proposals,' the Fianna Fáil deputy said.
Irish Independent
16-06-2025
- Automotive
- Irish Independent
Insurance brokers accused of ‘inherently unfair' commission structure that favours higher premiums
The Alliance for Insurance Reform has questioned why most insurance brokers charge a fee that is based on a percentage of the cost of a policy. It claimed that the higher the premium a broker will secure for a consumer from an insurer, the more money the broker will make in commissions. It said broker commissions account for 'an increasing proportion of the overall cost of insurance'. It said other professions are precluded from charging a fee based on a percentage of the product or services and said this is something that also needs further examination. In a submission to the Department of Finance, as part of the public consultation on a new Action Plan for Insurance Reform, the Alliance for Insurance Reform said: 'Many brokers now charge a fee based on a percentage of the cost of the policy. This is inherently unfair to consumers as the 'worse' the premium they secure for them, the more money they will make.' The Alliance called for a detailed examination of the brokerage market in Ireland to be carried out, with strong consumer input. Commissions paid to brokers for selling motor insurance were 14pc of the premium in 2023, according to the Central Bank of Ireland's 'Private Motor Insurance Report', issued last October. A separate Central Bank report found the average motor premium is now €616. This means brokers earn €86 on the average motor premium. Both motor and home insurance costs have been rising now for months. Asked for a response, Brokers Ireland, which represents the sector, said the claim that brokerage charges account for 'an increasing proportion of the overall cost of insurance' lacks a clear evidential basis. It said the Central Bank's Consumer Protection Code mandates full disclosure of fees and commissions at the point of sale. Brokers Ireland said consumers are fully informed of how brokers are remunerated. 'Furthermore, insurance brokers typically work to reduce overall insurance costs for consumers by sourcing the most competitive and appropriate cover,' it said. It said the suggestion that percentage-based commissions are 'inherently unfair' misrepresents how insurance intermediation works. 'Commission-based models are a long-standing and internationally accepted form of broker remuneration, aligned with the interests of consumers,' it said. 'Insurance brokers are incentivised to deliver appropriate cover, value for money and ongoing service – all of which drive client retention and trust.'
Irish Examiner
22-04-2025
- Business
- Irish Examiner
Tidy Towns groups released from burden of insurance costs with new partnership
Tidy Towns groups across the country will no longer have to pay insurance under a new partnership between local authorities and Irish Public Bodies Insurance. The agreement will significantly cut the costs incurred by more than 1,000 active Tidy Towns groups and will enable them to focus their energy and resources on community activities. The initiative, which has already seen 700 groups sign up, pools the risk associated with Tidy Towns activities under a master policy undertaken by local authorities enabling the voluntary groups to focus on their core mission of improving the local amenity in their communities. Chair of IPB Insurance, John Hogan, said: 'As a mutual insurer, we believe in the strength of the collective and working together. This initiative demonstrates the benefits of collaboration to address insurance challenges that make a meaningful difference for our members and their communities. "We are delighted to partner with our local authority members to deliver a community insurance scheme that protects those who do so much for their communities on a voluntary basis.' Interest in the SuperValu TidyTowns competition has increased year on year with over 900 entries received for the competition in 2024. The competition has been running since 1958 and is administered by the Department of Rural and Community Development. Welcoming the initiative, Robert Troy, Minister of State at the Department of Finance, said: 'Volunteer and local groups like Tidy Towns help keep towns clean and attractive, while offering ways for people to support their communities and address local needs. 'This partnership between Irish Public Bodies (IPB) Insurance and the 31 local authorities will mean Tidy Towns groups will have insurance cover, at no cost to them. This will enable local authority-backed Tidy Towns groups to continue their vital work bringing benefits to the community, and indeed the country, as a whole." He said the scheme also exemplifies the success of the Government's insurance reform agenda. "The implementation of the Action Plan for Insurance Reform has yielded substantial benefits for consumers. Notably, insurance capacity is now accessible in previously challenging sectors, including hospitality, leisure activities, and community groups.' Anna Marie Delaney, Chair of the County and City Management Association (CCMA) said the changes will add to the grant funding which local authorities had already been providing to support community groups. The cost savings associated with the scheme should assist groups by ensuring they have more resources available to support their activities. Read More Tidy Towns champion who helped his town win coveted top award named Cork Person of the Month
