Dáil Éireann Debate, Thursday - 16 February 2023
197. Deputy Duncan Smith asked the Minister for Finance if his attention has been drawn to the extreme rise in costs for motorcycle sport insurance and its effect on motorcycle racing this year; and if he will make a statement on the matter. [7804/23]
View answer199. Deputy Richard O'Donoghue asked the Minister for Finance if his attention has been drawn to the fact that an organisation (details supplied) is unable to obtain public liability insurance to cover all event types; and if he will make a statement on the matter. [7893/23]
View answerI propose to take Questions Nos. 197 and 199 together.
I note that both questions refer to difficulties in relation to acquiring insurance for motorcycle racing. As the Deputies will appreciate, I am unable to comment on individual cases. Moreover, neither the Minister for Finance, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (the Solvency II Directive).
This Government recognises the fact that a number of outdoor/high-footfall activity sectors, including motorcycle sports, are facing difficulty in terms of affordability and availability of insurance. It has therefore prioritised the implementation of the Action Plan for Insurance Reform, which aims to improve the cost and availability of insurance for all groups, including sporting organisations. The latest Implementation Report, published in November 2022, demonstrates that significant progress has been made in implementing these reforms, with approximately 90 percent of the actions either delivered or ongoing.
One of the key developments has been the implementation of the Personal Injuries Guidelines , which have reduced average award levels by nearly 40 per cent. Government has consistently emphasised its clear expectation that insurers should pass-on any savings arising from the reform agenda to customers. Minister of State Carroll MacNeill will be meeting with the main insurers in the Irish market this month in order to reiterate the need for insurers to reflect lower claims costs through reduced premiums, but also by increasing their risk appetite to provide cover to lesser-served, ‘pinch-point’ sectors.
Work remains ongoing on a whole-of Government basis to ensure the timely implementation of the remaining elements of the Action Plan . Of particular relevance are the proposed amendments to the duty of care legislation. The policy intent is that these measures will have a significant impact on the issue of slips, trips and falls, and thus should assist the sporting and outdoor activity sector as a whole.
Data from the Central Bank of Ireland illustrates that the public liability market has been loss making for a number of years, and consequently insurers are reluctant to enter into this area. At the same time, this more specialised market segment is closely linked to global insurance trends, and is therefore slower to reflect the changes being delivered through the Government reform agenda than more commoditised products, such as motor insurance. Nevertheless, there are clear signs that the market is beginning to respond to the success of the Action Plan for Insurance Reform , with insurers moving into previously problematic niche areas such as childcare, inflatables and the equestrian sectors.
In conclusion, securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. It is therefore my intention to work with my Government colleagues to ensure that the implementation of the Action Plan will continue to have a positive impact on the affordability and availability of insurance for all groups, including sporting clubs and organisations.
