The second phase of the Cost of Insurance Working Group project culminated in the publication on January 25 of the Report on the Cost of Employer and Public Liability Insurance, following its approval by Government. This Report makes 15 recommendations with 29 associated actions to be carried out, detailed in an Action Plan contained in the Report with agreed timelines for implementation.
All 29 actions are scheduled to be implemented before the end of 2019, with 26 due for completion this year. The following numbers of actions are due in each respective quarter:
- Q1 2018: 8 actions
- Q2 2018: 7 actions
- Q3 2018: 4 actions
- Q4 2018: 7 actions
- Q1 2019: 1 action
- Q2 2019: 1 action
- Q4 2019: 1 action (no action is due in Q3 2019)
There is a commitment within the Report that the Working Group will prepare quarterly updates on its progress. Following the four previous such quarterly reports which focused exclusively on the implementation of the Report on the Cost of Motor Insurance, the Fifth Progress Update was published on May 11 and shows that in respect of the eight actions from the Report on Employer and Public Liability Insurance due for completion in Q1 2018, all eight deadlines have been met.
It is appreciated that these eight actions in the main can best be described as stepping stones to the implementation of broader policy initiatives such as, for instance, improving the engagement process between insurers and policyholders with claims submitted against them, and ensuring that enhanced communication between An Garda Síochána and the insurance industry will lead to more effective investigation and prosecution of cases involving insurance fraud. Nevertheless, they are important first steps and I am confident that further significant progress can be made over the coming months.
Accordingly, the Working Group will continue to focus on implementing the recommendations of the Report on the Cost of Employer and Public Liability Insurance, in parallel with implementing those from the 2017 Motor Report. I am hopeful that the cumulative effects of the completion of the two Reports’ recommendations will result in increased stability in the pricing of insurance for businesses and improved availability of liability insurance for all types of bodies.