Dáil Éireann Debate, Tuesday - 12 October 2021
109. Deputy Catherine Murphy asked the Minister for Finance the progress made to date in respect of public liability insurance in the context of start-up businesses and existing businesses (details supplied) being quoted extremely high premiums placing an unnecessary burden on their ability to trade and or continued existence; and if he has engaged with the Tánaiste and Minister for Enterprise, Trade and Employment on this issue. [49171/21]
View answerI am aware that the affordability and availability of public liability insurance are issues of concern for many businesses, particularly those involved in tourism, such as the company referred to. 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.
However, Government understands the importance of businesses being able to access affordable insurance, and is working to improve the cost and availability of this vital financial service through 66 cross-departmental actions under the Action Plan for Insurance Reform. This work is being prioritised by the Cabinet Committee Sub-Group on Insurance Reform, which is chaired by the Tánaiste and Minister for Enterprise, Trade and Employment. The Sub-Group meets regularly to review the implementation of this reform agenda, which is progressing well, with 34 of the 66 actions now complete. Later this month, we will be meeting to discuss how to progress the remaining reforms in a timely manner.
I note that the details supplied mention the UK’s withdrawal from the EU in relation to the capacity issues currently being experienced by some businesses when seeking public liability cover. Although exacerbated by Brexit, I understand that a more prominent reason for the market withdrawal of some international insurers in recent years has been instability in the personal injury claims environment. I believe the new Personal Injuries Guidelines , a key reform which has been delivered several months ahead of schedule, should help to reduce uncertainty for claimants and insurers, and encourage greater use of the Personal Injuries Assessment Board (PIAB) in claims settlement. Given that they have also cut award levels for many injuries, use of the Guidelines should reduce the overall cost of claims. I expect insurers to reflect these savings by lowering premiums for customers, including businesses. Government will hold the industry to account in this regard. I also believe insurers should now extend their risk appetite to provide insurance in sectors experiencing capacity issues, such as tourism, given the stability afforded by the Guidelines.
Upcoming Action Plan priorities also aim to ease the insurance burden for businesses in particular. These include legislative proposals to reform the law on Occupiers’ Liability and the Duty of Care, which are expected to be brought to Government for approval shortly. The Department of Enterprise, Trade and Employment is also working to bring forward legislation to enhance the role of the PIAB, which should lead to an increased number of claims being settled more cost-effectively. Minister of State Fleming and I will continue to work with colleagues to drive forward these reforms with a view to improving the insurance environment for both existing businesses and start-up firms, which are vital to the post-pandemic recovery.
