Dáil Éireann debate -
Thursday, 28 Feb 2002

Vol. 550 No. 1

Written Answers. - Insurance Industry.

Richard Bruton

Question:

59 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the availability of employers' liability and public liability insurance in the Irish market; and the trend in premia over the past five years. [7337/02]

Richard Bruton

Question:

60 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment her estimate of the number of industrial workers who are covered for injury or other hazards by way of employers' liability insurance; and the proportion of all industrial workers that this represents. [7338/02]

Richard Bruton

Question:

62 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the way in which the cost of employers' liability in Ireland compares to other EU countries. [7340/02]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy):

I propose to take Questions Nos. 59, 60 and 62 dealing with employers' insurance together.

The pricing and underwriting of insurance is a matter for insurance companies themselves. EU law prevents us from intervening in the pricing or underwriting of insurance. Thus, we have no information about premium trends in the past five years. We are aware that premiums have increased in 2001 and 2002. Insurers have attributed these increases to the high cost of settling claims in Ireland, the general reduction in investment returns, recent court decisions that necessitate increased claims reserves and costs to reinsurers of the events of 11 September last. While employer liability insurance is not compulsory in Ireland, the award of State and local authority contracts is dependant on the tenderer having appropriate insurance cover. While there is no authoritative information on the number of employed covered by employers' liability insurance, a report published by IBEC in March 2001 contains a survey indicating that 89% of companies were covered either by commercial or self-insurance.

While successive reports indicate that employers' liability insurance costs are higher in Ireland than in other member states, this may be attributable to the differences in social provision between Ireland and other EU member states. In many EU countries medical expenses and loss of earnings are largely, if not totally, provided for by the state. Where such arrangements are in place, they may operate through partial recoverability against employers, but they do have implications in relation to the level of taxes on employment.

Richard Bruton

Question:

61 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if Ireland is alone among EU countries in not providing for compulsory employers' liability insurance. [7339/02]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy):

We are aware that in the United Kingdom, employers' liability compulsory insurance legislation is in place. As regards other EU countries, the position is somewhat more complex. The Deloitte & Touche Management Consultants Report on Insurance Costs in Ireland (1996) stated that the continental countries differ so much from Ireland and the UK, in these respects, that it is difficult to make meaningful comparisons. While this reference is to comparisons of premium levels, the report pointed out that in some EU countries medical expenses are largely, or even totally, provided for by the state. Where such arrangements are in place, it seems that they may operate through partial recoverability against employers, but they do have implications in relation to the level of taxes on employment.

Question No. 62 answered with Question No. 59.