Dáil Éireann Debate, Tuesday - 29 June 2021
157. Deputy Alan Kelly asked the Minister for Finance the steps he has taken to reduce the cost of employers’ liability and public liability which are a major threat to businesses; and if he will make a statement on the matter. [34778/21]
View answerAs committed to in the 2020 Programme for Government, Government is prioritising reform of the insurance sector with particular emphasis on motor, public, and employer liability insurance. The whole-of-Government approach being taken through the Action Plan for Insurance Reform therefore sets out 66 actions which aim to improve both the cost and availability of this key financial services, particularly for businesses. In this regard, I welcome the implementation of the Personal Injuries Guidelines, which represents a key achievement of this insurance reform agenda, and was realised several months ahead of schedule.
The Guidelines significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Of note is that a number of common injuries will now move to the jurisdiction of the District rather than the Circuit Court, thus reducing associated legal fees. The Guidelines also provide guidance in relation to injuries previously not included in the Book of Quantum and will be used by both the Personal Injuries Assessment Board (PIAB) and the judiciary. Therefore, they should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using the PIAB to settle claims. This in turn should further reduce the costs of claims, particularly legal fees. I have previously set out my view that these costs, rather than the profit component, tend to represent a bigger factor in the cost of insurance premiums. As such, it is important that they are lowered.
As Minister for Finance, my expectation is that insurers will now commence reflecting savings from reduced award levels to customers, in line with past commitments, and I intend to hold them to account on this. Minister of State Fleming met with the CEOs of the main insurers operating in Ireland to set out the Government’s expectation in this regard. These engagements were positive, with insurers indicating that they will begin lowering premiums in response to the Guidelines. The Minister of State will meet with CEOs again later this year to review their ongoing response to this and other key reforms. My officials are also engaging with the Central Bank to consider what enhancements could be made to further improve transparency through the National Claims Information Database, so that the impact of the Guidelines can be seen in future motor, employer and public liability reports.
Finally, I would like to assure the Deputy that work remains ongoing across Government to deliver further elements of the Action Plan, including measures to reform the PIAB, reduce fraud, and make changes to the duty of care in order to strengthen waivers and notices. It is my hope that the implementation of these key actions in particular should further help to lower insurance costs for businesses.
