Dáil Éireann Debate, Wednesday - 19 January 2022
305. Deputy Sorca Clarke asked the Minister for Finance if his attention has been drawn to the lack of insurance providers for community groups; if consideration has been given to the State providing cover in such cases; and if he will make a statement on the matter. [63412/21]
View answerAt the outset, it is important to point out that neither I, nor the Central Bank, can intervene in the provision or pricing of insurance products, which is ultimately a commercial matter for each provider. This position is reinforced by EU legislation, specifically the Solvency II Directive.
However, this point notwithstanding, the Government is committed to reforming the Irish insurance environment through delivery of the Action Plan for Insurance Reform.
One of the key developments to date is the new Office to Promote Competition in the Insurance Market, which is chaired by Minister of State Fleming. This Office is an important element of the Government's ambitious insurance reform programme to help to enhance competition, reduce costs and increase the availability of cover.
Since its establishment, the Office has held over 60 meetings with a wide range of stakeholders including insurance companies, representative bodies, civil society groups and state regulators on issues surrounding competition. Minister Fleming also recently met with the CEOs of the major insurance providers in Ireland to discuss a variety of issues with them, including expanding their risk appetite in underserved areas, such as those raised by the Deputy. Furthermore, he has also met with niche providers who are seeking to expand their cover here.
Separately, the Office is also working closely with the IDA to bring, where possible, new entrants into the Irish insurance market and to improve the market's overall competitiveness. Officials are seeking to leverage the ongoing reform work for potential new market entrants and are identifying targets to engage with. This will, in the first instance, seek out providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market where some customers are encountering difficulties.
In conclusion, this Government is committed to securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland. In this regard, it is my intention to work with colleagues across Government departments to ensure the timely implementation of the Action Plan as the best means of helping deliver this, including for the sectors outlined in the Deputy’s question.
