Urgent action on real reforms will be the measure of Sub-Group’s success
The Alliance for Insurance Reform has welcomed the establishment of a Cabinet Committee Sub-Group on insurance reform, to replace the Cost of Insurance Working Group.
Commenting on the Government’s announcement of the plan, Peter Boland, director of the Alliance said that “The Sub-Group on insurance reform is to be welcomed. Its predecessor, the Cost of Insurance Working Group, had become a box-ticking exercise and unfortunately for policyholders, none of the boxes that were ticked applied downward pressure on insurance costs. The success of this Sub-Group will be measured by the speed with which it moves to get real reforms in place.
“We note that on the launch of the plan, Deputy Sean Fleming, Minister of State at the Department of Finance with responsibility for Financial Services, Credit Unions and Insurance, identified a substantial reduction in the level of damages for personal injuries paid out in Ireland as being key to meaningful reform. Additionally, we would see the rebalancing of the duty of care applied to policyholders in Ireland as an essential part of the reform agenda.
“We look forward to seeing the detailed plans and timelines of the Sub-Committee and trust that it will move swiftly to implement them as it is clear that the Irish economy will not recover from the pandemic through SMEs, nor will Irish society recover through charity, voluntary and community groups, unless insurance is sorted.”