Dáil Éireann Debate, Tuesday - 27 July 2021
303. Deputy Martin Browne asked the Minister for Finance if his attention has been drawn to the fact that a tourism business (details supplied) has been forced to close due to being unable to get insurance which will lead to the loss of up to 20 jobs and removes an important tourist attraction from north County Tipperary; and if he will make a statement on the matter. [39281/21]
View answerI am conscious of the difficulties that the absence or withdrawal of insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has prioritised insurance reform. While neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. This includes the important leisure and hospitality sectors.
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. As you may be aware, the Government recently published the first Action Plan Implementation Report, which shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed.
Among these key achievements has been the implementation of new Personal Injuries Guidelines, which have significantly lowered 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. Minister Fleming will meet with CEOs of the major insurance providers again later this year to review their ongoing response to this and other key reforms.
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 state regulators on the issues surrounding competition. Minister Fleming will report on a regular basis to the Cabinet Sub-Group on its progress.
The Department is also working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. Officials from both are developing a customised proposal for potential market entrants and are targets to engage intensively with. This will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market such as the one you have highlighted.
The Deputy may also be aware that the Central Bank recently published the first National Claims Information Database report on employers' liability (EL), public liability (PL) and commercial property insurance. It showed that many businesses in Ireland are accessing affordable insurance, but some industries are finding it very difficult. This is a rich source of data which will further enhance the transparency of the sector. My officials are also engaging with the Central Bank to consider what enhancements could be made to further improve transparency through the next iteration of this report, so that the impact of the Guidelines can be seen in the EL, PL and commercial property market.
I would like to add that we are already seeing indications that the insurance industry is beginning to respond positively to our reform agenda.
Finally, it may interest the Deputy to know that Insurance Ireland, the representative body for insurance providers in this country, operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed at feedback@insuranceireland.eu.
