Download A Copy Of The NCPC Report Here.pdf

The National Competitiveness and Productivity Council (NCPC) aims to promote sustainable economic growth and quality employment. The council has examined insurance costs, which undermine the competitiveness of Irish businesses, particularly SMEs. Liability insurance, including employers' liability (EL) and public liability (PL) insurance, is a key facilitator of economic activity, but its high cost in Ireland is a concern. The council believes that bringing award levels in line with other jurisdictions, ensuring consistency of award levels, and reducing settlement costs are key actions to soften the Irish liability insurance market. The Government's Action Plan for Insurance Reform, including the Personal Injuries Guidelines, should achieve this, and further actions may be needed if not. The NCPC also emphasizes the importance of transparency and information on insurance markets, and welcomes the establishment of the National Claims Information Database (NCID). Insurance markets are characterized by underwriting cycles, and the Irish EL and PL insurance market likely entered a hard market phase in 2012. The council draws lessons from the US liability crisis in the 1980s, where tort reform laws limited insurance costs, and suggests that similar reforms could be effective in reducing liability costs in Ireland.