Dáil Éireann Debate, Tuesday - 22 June 2021
212. Deputy Martin Browne asked the Minister for Finance his views on a situation in which the owners of a listed thatched building, that comprises a pub and private residence, are having issues in securing building insurance; the measures available to ensure that owners of listed buildings can access affordable insurance in order to protect the historic value of structures; and if he will make a statement on the matter. [33603/21]
View answer218. Deputy Martin Browne asked the Minister for Finance the measures he is taking to ensure that listed properties that have a thatched roof can access affordable insurance; his views on the way some owners of such private or commercial properties are experiencing difficulty in getting a company to insure them; his views on the high costs demanded by insurance companies that will accept thatched properties; his views on the way this difficulty in attaining cover could put the preservation of these properties at risk; and if he will make a statement on the matter. [32942/21]
View answerI propose to take Questions Nos. 212 and 218 together.
The Government is conscious of the difficulties facing owners of thatched properties in relation to affordability and availability of insurance. Having said that, the Deputy will appreciate that, neither I, nor the Central Bank of Ireland, have powers around pricing or provision of insurance cover. These are commercial matters for insurance companies based on an assessment of the risks they are willing to accept and the need to make adequate provisioning to meet these risks. This position is reinforced by the EU framework for insurance (the Solvency II Directive).
Notwithstanding these constraints, insurance reform is high on the Government’s agenda as evidenced by the Action Plan for Insurance Reform. The Action Plan sets out 66 actions which aim to bring down costs for consumers and business; introduce more competition into the market; prevent fraud and reduce the burden that insurance costs can have on business, community and voluntary organisations.
I would like to note that significant progress have been made in this regard. Achievement to date includes:
- The adoption of new Personal Injuries Guidelines by the Judicial Council; and
- The creation of an Office to Promote Competition in the Insurance Market within the Department of Finance.
As the Deputy will know, the new Personal Injuries Guidelines came into effect on 24 April. The Guidelines materially reduce award levels for many categories of common injuries, particularly those of soft tissue. As awards have been reduced, we now expect that insurance premiums should also be reduced. This is a logical consequence and it is also the commitment that the industry has made.
Another key achievement of the reform agenda is the new Office to Promote Competition in the Insurance Market. Since its establishment, the Office has held meetings with wide range of stakeholders including insurance companies, representative bodies, civil society groups and other state regulators on the issues surrounding competition. Minister of State Fleming chairs meetings of the Office which has met on a number of occasions since its establishment and will report on a regular basis to the Cabinet Sub-Group on its progress.
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. In this regard, it is my intention to continue to work with my Government colleagues to ensure the timely implementation of the Action Plan which will have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.
