10 December 2020

Action Plan for Insurance reform

On 8 December the Government published its first ever Action Plan for Insurance Reform.

BACK

Action Plan for Insurance reform

On 8 December the Government published its first ever Action Plan for Insurance Reform.

A sub-group, comprising of a number of departments and the Central Bank, was set up in September to ensure a “whole-of-Government” approach.

The sub-group have set about implementing the Action Plan and six-monthly progress reports will be issued.

The main actions are:

  1. Commencement of the Consumer Insurance Contracts Act 2019. This commenced in September 2020 with the remaining sections to commence in September 2021
  2. To have the Judicial Counsel’s Personal Injuries Guidelines adopted by 31 July 2021
  3. Ensure that the courts shall have regard to the Personal Injuries Guidelines
  4. Enhance the PIAB through legislative proposals
  5. Review the Occupiers’ Liability Act 1995 in relation to the duty of care owed
  6. Recommend changes to reduce fraud to include making an exaggerated and/or false claims and to enact and commence the Perjury and Related Offences Bill 2018
  7. Review the Central Bank’s report on Differential Pricing in the Motor and Home Insurance Markets and take any appropriate actions

Conclusions

Taking the positives, you would say at least something is being done. This is an action plan for the coming years, so it will be interesting to see what additional changes are made over and above the Cost of Insurance Working Group’s previous reports.

The new Personal Injuries Guidelines from the Judicial Council is due to be published early next year and much seems to be hanging on these being the solution to a lot of problems. Unfortunately, until such time as the guidelines are produced, no one knows what effect they will have. A failure to significantly reduce awards will not be received well.

Next year is going to be an interesting year as it is expected claims numbers will be down due to COVID 19. It’s a case of wait and see as to how that plays out against forthcoming changes.


Michael Whelan

Head of Casualty

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