The 2025-2029 Action Plan for Insurance Reform

In July 2025, the government unveiled its 2025-2029 Action Plan for Insurance Reform, a significant development for consumers, businesses, and legal professionals across Ireland. This new initiative is the successor to the 2020 plan and is designed to build on its foundations to tackle the long-standing issues of affordability and availability in the Irish insurance market. For many, high premiums have been a major point of concern, so this plan aims to create a fairer and more sustainable environment for all.

While the previous plan successfully led to reductions in motor insurance premiums and brought more consistency to personal injury awards, the new action plan represents the next phase of a comprehensive reform agenda. It is an ambitious project with 26 actions spread across six key pillars, ranging from tackling fraud to enhancing competition. The overarching goal is to achieve meaningful change that can be felt in the pockets of Irish citizens and businesses.

For those in the legal sector, as well as anyone who might need to make a claim in the future, the most critical part of this plan is its focus on legal reform. This article will examine the specific proposals for the claims process, the role of the Injuries Resolution Board, and the ongoing debate over legal costs. Understanding these changes is essential as they will directly impact how personal injury claims are managed and resolved in the coming years.

The core principles of the new plan

The 2025-2029 Action Plan is built on six key pillars designed to create a more stable and competitive insurance market. Its six core themes are:

1. Transparency and Affordability
2. Competitiveness and Availability
3. Fraud
4. Innovation and Skills
5. Climate Protection Gap
6. Legal Reform

While all six areas are crucial to the overall strategy, it is the focus on Legal Reform that is set to have the most significant impact on the day-to-day operations of legal practitioners and the claims process for clients. This section of the plan directly addresses the costs and efficiency of the litigation system.

Key legal reforms and their implications

The Government’s action plan contains several key proposals that are of direct relevance to the legal sector and to anyone involved in a personal injury claim. These changes aim to reshape the litigation landscape in Ireland, focusing on efficiency, cost, and consistency.

Strengthening the Injuries Resolution Board (IRB)

A central pillar of the new plan is to enhance the role of the Injuries Resolution Board. Proposed changes include making mediation a default process for personal injury claims, which would significantly increase the number of cases handled outside of court. Furthermore, the plan suggests that a court should have the power to send a claim back to the IRB if new evidence comes to light, a move aimed at ensuring the board remains the primary avenue for dispute resolution. A proposal to allow the awarding of legal fees for cases resolved through the board is also on the table. This would incentivise more people to use the service, rather than proceeding straight to litigation, by providing a route for recovering costs.

Benchmarking Awards and the Personal Injuries Guidelines

The plan mandates a study to compare Irish personal injury awards to those in the UK and other European jurisdictions. The purpose of this benchmarking exercise is to assess whether the existing Personal Injuries Guidelines have been successful in bringing down the level of awards and creating greater consistency. While the guidelines have already had a notable impact on general damages, this review could potentially lead to further adjustments to award levels.

Addressing the Cost of Legal Fees

A key area of focus is the cost of civil litigation. The plan will examine and recommend the application of a scale of fees for personal injury cases. The Government’s view is that transparent and proportionate legal fees are essential to making the insurance system more affordable. While this could potentially cap legal costs, it will also likely trigger a debate within the legal profession about the importance of ensuring a client’s right to full and fair representation is not compromised by a rigid fee structure.

Amendments to the Judicial Council Act 2019

The final key legal reform proposed is an amendment to the Judicial Council Act. The plan suggests extending the review period for the Personal Injuries Guidelines from the current three-year cycle to a longer timeframe, such as seven years. This is intended to provide greater certainty and stability to both the insurance and legal markets, preventing frequent changes to the guidelines that can make it difficult to predict outcomes.

What these changes mean for stakeholders

The proposed reforms in the Action Plan will have a direct impact on various groups within Irish society. These changes aim to achieve a more balanced and efficient system.

For Businesses and Consumers

The government’s primary objective is to reduce the cost of insurance and increase market transparency. By strengthening the Injuries Resolution Board and reforming legal costs, the plan hopes to make the claims process more efficient and predictable. This, in turn, should lead to lower premiums for businesses, community groups, and individual consumers. While the full effects will only become clear over time, the plan signals a continued effort to make the Irish insurance market more affordable and fair.

For the Legal Profession

The Action Plan presents both challenges and opportunities for legal professionals. The emphasis on using the Injuries Resolution Board and mediation means that litigation in court may become less frequent for certain types of claims. Solicitors will increasingly need to specialise in guiding clients through these alternative dispute resolution processes to ensure their rights are protected and that they receive a fair outcome. The focus on legal costs also means firms will need to be prepared for greater scrutiny and potential changes to how fees are structured. The plan essentially calls for the legal sector to adapt to a system that prioritises efficiency and cost-effectiveness.

Navigating these new changes

The new Action Plan marks a significant step in the evolution of Ireland’s legal and insurance landscape. The reforms outlined are designed to bring greater transparency, consistency, and affordability to a market that has long been a source of frustration for many. While the government is setting the agenda, the ultimate success of these measures will depend on their practical implementation and the willingness of all parties to adapt.

At McCarthy + Co. Solicitors LLP, we are actively monitoring these developments to ensure we can provide our clients with the most up-to-date and effective legal advice. The changes to the Injuries Resolution Board and the potential for new legal cost structures highlight the importance of expert legal guidance in navigating the claims process. If you have questions about a potential claim or how these reforms may affect you, please do not hesitate to contact us for a confidential consultation. We are here to help you understand your rights and to ensure you receive a fair outcome.