Dáil Éireann Debate, Thursday - 8 July 2021
184. Deputy Paul Kehoe asked the Minister for Finance if consideration is being given to assisting community groups that are developing community facilities, for example, playgrounds and sports areas using public funding streams in obtaining insurance; and if he will make a statement on the matter. [37157/21]
View answerAt the outset, it is important to note that neither the Minister for Finance, nor the Central Bank of Ireland have any influence over the pricing or provision of insurance products, as this is a commercial matter. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).
Having said that, the Government is acutely aware of the concerns felt by many sectors, including the one highlighted by the Deputy, regarding the cost and availability of insurance, and has therefore prioritised insurance reform. 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 impose 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.
Among the most significant achievements to date has been the creation of the Office to Promote Competition in the Insurance Market within my Department. The role of the Office, which is chaired by my colleague Minister of State Fleming, is twofold: to assist in reducing insurance costs, and increasing the availability of cover, by promoting competition in the Irish insurance market. The Office is working closely with the IDA which is attempting to identify potential new entrants for the Irish insurance market. Areas which have been identified as ‘pinch-points’ include: construction-related professional indemnity; tourism/hospitality; and high-footfall amenities such as those highlighted by the Deputy.
I would like to add there have been some encouraging developments in the last few weeks in relation to specialist insurers entering the market in some of these segments. I remain positive that, though its work, the Competition Office can help encourage more suppliers to enter the market and provide more choice for consumers.
Finally, I would like to take this opportunity to assure the Deputy that 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 work with my Government colleagues to ensure that implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.
