Dáil Éireann Debate, Tuesday - 6 July 2021
160. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the problems faced by the tree surgery industry in accessing affordable insurance; the actions he has taken in relation to same; and if he will make a statement on the matter. [35822/21]
View answerAt the outset it is important to note that neither I, nor the Minister for Finance or the Central Bank, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
Notwithstanding this, the Government understands the concerns felt by many groups, including the arborist sector, regarding the cost and availability of insurance. Accordingly, insurance reform is high on the Government agenda. In this regard, the Action Plan for Insurance Reform 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. The Plan is ambitious, with 95% of actions due to be completed in 2021, and work is continuing across several Government departments to deliver these key reforms.
I would note that significant progress has been made on the reform agenda. Of note is the adoption of new personal injuries guidelines. These have reduced awards and I now expect that premiums will decline as a consequence. It is something I have impressed in my bilateral engagements with the insurance industry over recent months.
Another significant achievement has been the creation of the Office to Promote Competition in the Insurance Market within the Department of Finance. The role of the Office, which I chair, is twofold: to assist in reducing insurance costs, and increasing the availability of cover, by promoting competition in the Irish insurance market. The Office has held a number of meetings with several key stakeholders, including representatives of civic society, to discuss important matters regarding reducing cost, consumer empowerment and increasing the provision of relevant information.
The Office is also working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. In conjunction with the IDA, my officials are developing a customised proposal for potential new market entrants and are identifying a shortlist of specific targets to engage intensively with. This proposal will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market.
I would like to add that we are already seeing the insurance industry respond positively to our reform progress with the announcement recently by some specialist providers that they will expand their footprint in Ireland. This should help ease the capacity issues particularly in the professional indemnity market, which has been prominent in recent years.
Finally, it is my firm belief that ongoing work across Government to deliver the remaining elements of the Action Plan, including measures to reform the Personal Injuries Assessment Board (PIAB), reduce fraud, and make changes to the duty of care, will help more companies to expand their product lines or enter into the Irish market. This, in turn, will lower the insurance costs for customers across all sectors.
