Fianna Fáil TD Willie O’Dea has welcomed the introduction of a new Motor Insurance Transparency Code designed to improve openness around how motor insurance premiums are calculated and communicated to consumers.
The initiative aims to strengthen trust in the insurance sector by providing drivers with clearer information about how their premiums are determined and why they may change from year to year. According to Deputy O’Dea, the new code will give motorists a better understanding of what they are paying for and the reasons behind any increases in their insurance costs.
A central feature of the code is the introduction of a premium summary statement that insurers will provide to customers. The statement will outline key details including the previous year’s premium, the new premium amount, the difference between the two figures, and the factors that influenced the price change.
These factors may include levies, geographical location, and personal risk indicators such as licence type. By clearly outlining these elements, the code seeks to make pricing structures more transparent for policyholders.
Deputy O’Dea said unexplained increases in insurance premiums have long been a source of frustration for motorists. Many drivers receive higher renewal quotes without any detailed explanation from their insurers, leaving them uncertain about the reasons behind the price change.
He noted that the new transparency framework is intended to address this issue by ensuring that insurers communicate pricing adjustments in clear and accessible language. Under the code, insurance providers and intermediaries will be expected to explain premium changes while also outlining individual risk factors and broader market influences that may affect pricing.
The transparency code will operate on a voluntary basis and is open to all insurers and intermediaries offering private motor insurance in Ireland, including companies operating across borders.
In addition to explaining premium calculations, the framework will also provide consumers with guidance on steps they can take to reduce their risk profile and potentially lower their insurance costs. By offering clearer information and practical advice, policymakers hope the initiative will help motorists make more informed decisions when purchasing or renewing motor insurance policies.
