Cathal Crowe
Question:153. Deputy Cathal Crowe asked the Minister for Finance the measures in place to help artists and arts organisations cope with high insurance costs; and if he will make a statement on the matter. [47926/21]
View answerTuesday, 5 October 2021
Questions (153)
Written answers
I am aware of the difficulties being experienced by the arts sector due to the cost and availability of insurance. However, as the Deputy will be aware, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, nor do we have the power to direct insurance companies to provide cover to specific businesses or individuals. This position is reinforced by the EU Solvency II Directive framework.
Notwithstanding this, the Government firmly understands these issues and is working to address them through the Action Plan for Insurance Reform. This whole-of-Government approach sets out 66 actions that aim to improve both the cost and supply of this key financial service, particularly for businesses and voluntary organisations – including those involved in the arts. An Implementation Report of the Action Plan was published in July and shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed.
One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines which was realised several months ahead of schedule. 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 should reflect the savings from reduced award levels to customers. In meetings between Minister of State Fleming and CEOs of the main Irish insurers they indicated they will begin lowering premiums in response to the Guidelines. Government will hold them to account on this commitment.
In addition, work being led by the Minister of Justice to review the law on Occupiers’ Liability and the Duty of Care should also contribute to easing the insurance difficulties facing artists and arts organisations. I understand that legislative proposals to reform the law in this area are at an advanced stage and are expected to be brought to Government for approval shortly.
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 and reduce fraud. It is my hope that the implementation of these key actions in particular should go some way to improving the availability and affordability of insurance for all, including artists and arts organisations.