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Insurance Industry

Dáil Éireann Debate, Thursday - 28 April 2022

Thursday, 28 April 2022

Questions (50)

Holly Cairns

Question:

50. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to reduce the burden of insurance costs for the hospitality sector. [21421/22]

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Written answers

While, under EU law, neither the Minister for Finance 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, including the hospitality sector.

The whole-of-Government approach, being taken through the Action Plan for Insurance Reform, sets out 66 actions which aim to improve both the cost and availability of insurance, particularly for businesses. The Second Implementation Report, which was published on 1 March 2022, shows that 80 per cent of these actions are being delivered.

Among the key developments so far are the implementation of the new Personal Injury Guidelines, which significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Recent data from the Personal Injury Assessment Board (PIAB) show that award levels have fallen by an average of 42 per cent, providing stability and certainty to the claims environment.

As part of the effort to increase competition, the Department of Finance is working closely with the IDA to broaden the supply of insurance in the Irish insurance market, including in areas which have been identified as ‘pinch-points’, such as the hospitality sector. The IDA has commenced a multi-phased engagement process with targeted underwriters and will seek to leverage the developments of the Government insurance reform agenda to date.

Furthermore, rebalancing the duty of care is now a high priority action for Government and is being led by the Department of Justice. Overhauling this legislation should help to address the issue of “slips, trips and falls”, which are particularly prevalent in high-risk/heavy-footfall areas such as hospitality. Minister McEntee has noted in the Justice Plan 2022, published earlier this month, her intention to bring forward legislative proposals to reform the law in this area.

In conclusion, I wish to assure the Deputy of my intention to work with my Government colleagues to ensure further implementation of the Action Plan which should have a positive impact on the affordability and availability of insurance for all consumers.

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