Michael Healy-Rae
Question:238. Deputy Michael Healy-Rae asked the Minister for Finance if he will provide an update on bike and quad racing insurance (details supplied); and if he will make a statement on the matter. [31333/23]
View answerTuesday, 27 June 2023
Questions (238)
Written answers
Government is aware that a small number of activity-related sectors are currently facing difficulty in terms of affordability and availability of insurance. As the Deputy will be aware, neither Government 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, individuals, or groups, or to deliver it at a certain rate. This position is reinforced by the EU Solvency II Directive insurance framework. As such, the Government faces constraints in seeking to address this matter.
Nonetheless, we have therefore prioritised the implementation of the Action Plan for Insurance Reform, which aims to improve the cost and availability of insurance for all groups, including sporting organisations such as those involved in motorcycle racing. Considerable progress has been achieved, with the vast bulk of the 66 actions contained therein now delivered or ongoing.
Both Minister of State Carroll MacNeill and I have raised this issue directly with the insurance industry, including with Insurance Ireland. Furthermore, officials from my Department have been in contact with a wide range of stakeholders in the motorcycle racing sector to gain an insight into the scale and scope of the issue. I understand that while events such as motorcycle test and track days continue to operate, motorcycle racing is facing difficulties with regard to insurance availability. Feedback received has indicated that insurers may have concerns regarding risk mitigation at road racing events, which when combined with historic and recent occurrences at such races, could potentially impact on their underwriting decisions in the area.
It is a feature of the Irish insurance market that some smaller sectors, including motorcycle racing, have traditionally been dependent on specialist UK providers passporting into Ireland. As a consequence of the UK’s decision to leave the EU, this practice has now ended and it has become more expensive and difficult for niche underwriters from the UK to provide their products here. This has been exacerbated by the small size of some of these sectors, meaning that just one or two large or catastrophic claims can negatively impact insurance capacity for an extended period of time.
Notwithstanding this, work by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media in conjunction with Sports Ireland is ongoing to investigate insurance in the sporting sector as a whole. Accordingly, National Governing Bodies have been invited to contribute to this exercise. Officials from the Department of Finance remain in contact with their counterparts and all queries regarding this study should be directed to the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media.
In conclusion, I wish to reassure you that it is my intention to continue to work with my Government colleagues to ensure that the implementation of the Action Plan will continue to have a positive impact on the affordability and availability of insurance for all groups, including sporting clubs and organisations.