Vol. 543 No. 2
160 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will have the Competition Authority examine the insurance industry in view of the difficulties small businesses are having in acquiring public liability insurance from the companies operating here. [26923/01]
I have no reason to believe that the difficulties being experienced by small businesses in getting public liability insurance are caused by factors that would warrant my referring the matter to the Competition Authority for investigation. While there has been a contraction in the number of insurers offering public liability cover in the past number of years, there are other reasons for the difficulties being experienced. The insurance cycle, together with
the events of 11 September, has caused re-insurers to review the cover they are prepared to offer to insurers and the price at which they offer it.
161 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the difficulties small businesses are experiencing in getting public liability insurance; and if she will make a statement on the matter. [26924/01]
The difficulties being experienced by businesses in getting public liability insurance are attributable to a number of factors. There has certainly been a contraction in the number of players on the market in the past few years. The insurance cycle is also in that phase where prices increase. Moreover, I understand that the events of 11 September have accelerated price increases and have caused re-insurers to review the cover they are prepared to offer to insurers. All of this is felt by the consumer in the forms of higher prices and curtailed availability of cover.
I am not in a position to intervene in the matter of pricing or underwriting of insurance. I would encourage consumers and insurers to consider ways of ameliorating the worst effects of the current circumstances, for instance, by better management of risk.
