The Role of the Office to Promote Competition in the Insurance Market
The Office was formally established in December 2020, shortly after the presentation of Government’s presentation of the Action Plan for Insurance Reform.
The Office to Promote Competition in the Insurance Market was created following the formation of the Fianna Fáil, Fine Gael, Green Coalition in 2020. The 2020 Programme for Government identified that competition enhancements were needed in the Irish insurance market, and therefore made provision for the creation of an office to encourage greater competition in the market. The Office was formally established in December 2020, shortly after the presentation of Government’s presentation of the Action Plan for Insurance Reform.
Terms of Reference
The Government aims to reduce insurance costs and increase the availability of cover through increased competition in the market. These goals are to be achieved through encouraging competition between existing insurers in the market, such as expanding product offerings and encouraging new entrants to enter the Irish market, including new domestic companies, companies from EU/EEA States, or other third countries. However, new initiatives by the State to assist in advancing the above objectives should give regard to EU laws on insurance, state aid, competition and the statutory independence of State bodies.
The Government set a number of Guiding Principles for the Office on its establishment.
Develop a more strategic approach to promote greater competition in the insurance sector.
Take account of the Ireland for Finance strategy and the role played by the Minister of State for Financial Services, Credit Unions and Insurance at the Department of Finance.
Take account of the views of other State bodies that do not have a competition mandate, but do have longstanding expertise and experience of the insurance market in Ireland.
Avoid duplication of purpose about existing Government Offices/Agencies that have a competition remit.
Current State of Play
The Office produces an annual work plan highlighting the Office's priorities and actions for the year. The Work Plan 2024 sets out the context for the Office’s work in 2024. The Office points out that most objectives of the Action Plan are ongoing, with insurers positively recognising the enormity of the reforms.
However, as the insurance market worldwide is tightening, with prices increasing and capacity reducing. Therefore, the Office will focus on communicating the successful delivery of reform, to encourage further competition in the market.
The Office will undertake high-level actions across four themes: Promotion, Innovation, Strategic Engagement and Operational Engagement.
Promotion includes promoting reform achievements to industry stakeholders and representative groups, making stakeholders who may benefit from them, such as SMEs, and internationally promoting Ireland as a place to do business.
Innovation will ensure that ESG initiatives also contribute to market competition while ascertaining the role of InsurTech in market competition and engaging with education providers to overcome labour challenges.
Strategic Engagement will ensure the Office can identify potential capacity issues in the market while coordinating the approach of the Office with other State Bodies.
Operational Engagement includes supporting the Minister of States’ work on the Cabinet Sub-group on insurance reform, supporting the insurance-related objectives of the Department of Finance and the Department of Enterprise, Trade and Employment, and engaging with other State Bodies including the Central Bank, and Injuries Resolution Board.
The Government aims to reduce insurance costs and increase the availability of cover through increased competition in the market.