The insurance sector has witnessed significant reform since the publication of the first Action Plan for Insurance Reform in 2020. The Action Plan for Insurance Reform 2025-2029, published by the Domestic and Indirect Tax Division of the Department of Finance, signals a stronger push for comprehensive development within the insurance industry.
Background
This Action Plan involved ambitious reforms of the sector as a whole, including the creation of the Injuries Resolution Board ( a vast overhaul of its predecessor), the introduction of the Personal Injuries Guidelines, and the further enhancement of the National Claims Information Database. The Action Plan was led by the Sub-Group on Insurance Reform within the Cabinet Committee on the Economy, Trade and Competitiveness.
The Action Plan for Insurance Reform 2025-2029 stemmed from the recognition of the need for "a comprehensive insurance reform agenda….focusing on structural and legislative changes to create a fairer, more transparent market"1.
The new Action Plan aims to further reform across six key pillars: (i) transparency & affordability, (ii) competitiveness and availability, (iii) legal reform, (iv) fraud, (v) climate protection, and (vi) innovation & skills.
Recommendations
The recommendations forwarded by the Action Plan are ambitious and far-reaching.
Transparency and affordability
The Action Plan suggests enhancing transparency, with particular reference to motor insurance, through the development of "transparency code"2 and a feasibility study on how data collected by the Central Bank of Ireland can be used to assist.
This section further suggests implementing measures to enhance insurance related data, such as faster releases from the National Claims Information Database (NCID), further sectoral analysis, and examining access to further data on legal costs. Notably, the section suggests the usage of a Unique Identifier for personal injury cases, which would facilitate the integration of data across resolution channels to track consistency in the application of the Personal Injuries Guidelines.
The Action Plan suggests the provision of a default into the mediation process, which will have significant ramifications upon the process of personal injury litigation as a whole.
The Action Plan further suggests a process of remittance of injury claims back to the Injuries Resolution Board (IRB) where new evidence, such as a medical report, is presented. It is unclear how this will operate in practice, as this may lead to further delays and uncertainty.
The Action Plan calls for the IRB to undertake research on the acceptance of awards, in order to increase acceptance rates.
Perhaps the most notable recommendation under this heading is the call upon the Department of Justice, Home Affairs and Migration to recommend to the Government how a scale of fees, based on the work of the Interdepartmental Group, could be applied to civil litigation, in particular for personal injury litigation. The Action Plan further calls for the development of new guidelines to seat clear rates of fees for personal injury litigation, with the aim of promoting transparency and fairness in legal costs. The Action Plan also recommends the IRB to conduct an exercise to examine the levels of Irish personal injury awards against the United Kingdom and other European jurisdictions, to determine whether the Personal Injuries Guidelines have enabled consistency in the awarding of damages for personal injuries.
These recommendations are particularly relevant in the context of the inflationary environment witnessed in the insurance sector over the last number of years.
Competitiveness and availability
Under this heading, the Action Plan recommends that the Insurance Industry as a whole "expand and support"3 the Office to Promote Competition in the Insurance Market (OPCIM) by engaging with brokers and other relevant bodies on the expansion of insurance offerings and engaging with key stakeholders in the insurance industry relating to affordability.
The Action Plan calls for the industry to support the establishment of a European-wide single insurance market by actively engaging with the transposition of the Insurance Recovery and Resolution Directive (IRRD) and the Solvency II Review. It further calls for the proactive engagement with the international insurance market to encourage international entry to the Irish market and promoting Ireland as the destination of choice for insurance firms.
Fraud
The Action Plan recommends the insurance industry to explore the introduction of tougher penalties for insurance fraud and to engage in a network for intelligence sharing with An Garda Siochána.
In relation to motor insurance, it is recommended that the insurance sector actively promotes measures to reduce uninsured driving, which would lower the cost of claims. This action would in turn lower the impact on insurance premiums.
Innovation and skills
Under this heading, the Action Plan advocates for support of innovative solutions by insurers, including alternative risk reductions models and novel insurance models. The Action Plan further encourages the promotion of Ireland's "competitive edge"4 through innovation in Insurtech, via enterprise, InsureTech and Fintech.
Notably, the Action Plan calls for various governmental departments to liaise with relevant stakeholders to examine the needs of Ireland's insurance industry and consider how best to preserve talent.
Climate protection
The Action Plan calls for the insurance industry to develop a strategic approach to the provision of flood insurance, working with key bodies and stakeholders, to create a sustainable response to the flood insurance gaps.
The Action Plan further calls for various bodies to facilitate Government investment in flood relief schemes by strengthening governance arrangements in relation to the maintenance of said schemes and establishing links in relation to investment in innovative insurance products in climate-vulnerable areas. It is further recommended that the insurance industry actively promote collaboration on the climate protection gap and engaging with EU-wide insurance solutions to address the impact of natural catastrophes on the sector as a whole.
Legal reform
This heading sets out the most potentially impactful recommendations of the Action Plan.
The Action Plan calls for the amendment of the Judicial Council Act 2019 to strengthen transparency, including the adjustment of the review period for the Personal Injury Guidelines, providing for mandatory consultation with the Injuries Resolution Board, and providing clarity on the timeframe for the commencement of future revisions to the Guidelines.
Most notably, the Action Plan calls for the examination of the feasibility of introducing a cap on certain categories of minor/moderate personal injuries and the introduction of a dedicated model for the resolution of minor injuries.
The Action Plan calls for the furtherance of outstanding actions from the 2020 Action Plan to promote a cost-efficient personal injury claims resolution process, to include pre-action protocols and regulations to set the discount rates.
Conclusion
The Action Plan for Insurance Reform 2025-2029 sets out a forward-looking agenda to enhance transparency, lower costs and strengthen the international competitiveness of Ireland's insurance sector. By addressing key challenges, the Action Plan aims to further a more efficient and sustainable insurance environment. Stakeholders in the insurance industry ought to closely review the implementation of the Action Plan's recommendations and the associated impact upon personal injury litigation.
[1] Domestic and Indirect Tax Division Department of Finance, Action Plan for Insurance Reform 2025-2029: A Stronger Market, a Fairer Future (July 2025), pg. 8.
[2] Ibid, pg. 17.
[3] Domestic and Indirect Tax Division Department of Finance, Action Plan for Insurance Reform 2025-2029: A Stronger Market, a Fairer Future (July 2025), pg. 20.
[4] Ibid, pg. 22.
