Dáil Éireann Debate, Tuesday - 30 November 2021
204. Deputy Claire Kerrane asked the Minister for Finance if his attention has been drawn to difficulties being experienced by the equine industry when it comes to insurance; the action he has taken to protect jobs in the sector and to ensure that racing events can get insurance cover in order to go ahead; if he has engaged with the sector; and if he will make a statement on the matter. [58907/21]
View answerAt the outset, it is important to note that neither I nor the Central Bank of Ireland have any influence over the pricing or provision of insurance products, as this is a purely 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 ones highlighted by the Deputy, regarding the cost and availability of insurance. It has therefore prioritised the implementation of the Action Plan for Insurance Reform. As the Deputy may be aware, the first Action Plan Implementation Report, which was published in July, shows that significant progress has been made, with 34 of the 66 actions contained therein now completed.
One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines some six months ahead of schedule. Early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development; it is my hope that this trend will continue and result in lower costs for businesses. As the insurance reform agenda progresses, we will continue to hold the industry to account on its commitments to pass on savings from the Guidelines, and other elements of the reforms, to customers. Minister of State Fleming, in his recent engagement with the sector, re-emphasised the need for insurance providers to reduce premiums and increase their risk appetite to provide cover in new areas. It is my understanding that some providers have noted that they are considering expanding their footprint in the insurance market, including potentially in high-risk activity sectors. I will continue to monitor this situation.
Another key element of the Action Plan with particular relevance to these types of activities involves reviewing the Duty of Care. The Minister for Justice, who is leading on this action, has noted to Government the intention to bring forward legislative proposals to reform the law in this area. My officials have been informed by colleagues in the Department of Justice that these proposals are at an advanced stage.
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 the implementation of the Action Plan can continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country, including for the equine industry.
