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Dáil Éireann díospóireacht -
Wednesday, 2 Mar 1988

Vol. 378 No. 7

Written Answers. - Insurance Cover.

22.

asked the Minister for Industry and Commerce if he proposes to take urgent action with regard to the increasing and extreme difficulty which many people have in obtaining essential insurance for their premises and otherwise; if his attention has been drawn to the fact that there are certain apparent black spots in this respect and that the effect of the virtual impossibility of obtaining insurance in these areas is leading to widespread closure of business in certain locations, such as parts of Dublin city centre; and if he will initiate discussions and take whatever legal or other action is required in order to ensure that traders can obtain such essential insurance, at reasonable terms, in the near future.

40.

asked the Minister for Industry and Commerce if his attention has been drawn to the great difficulty being experienced by community, voluntary and sporting groups in obtaining public liability insurance; if he intends to take any measures to assist such groups in securing public liability cover; and if he will make a statement on the matter.

47.

asked the Minister for Industry and Commerce the plans, if any, he has in relation to the publication of the Blue Book which contains a summary of statements of the assurance business; and his views on the general question of availability of certain types of assurance or insurance.

49.

asked the Minister for Industry and Commerce if his attention has been drawn to the impossibility of some industries and small businesses obtaining adequate insurance cover; the fact that some concerns have had to close down, particularly in parts of inner city urban areas on this account; and the action he is taking to deal with this serious problem.

74.

asked the Minister for Industry and Commerce if his attention has been drawn to the enormous burden placed on the voluntary workers who made up the membership of community associations by the high cost of securing insurance and public liability cover; and if so, the steps he proposes to initiate to alleviate this hardship.

75.

asked the Minister for Industry and Commerce if his attention has been drawn to the difficulties being experienced by jarveys in Killarney, County Kerry, as a result of their inability to procure public liability insurance which is a condition of their licensing obligation; and if he will make a statement on the matter.

76.

asked the Minister for Industry and Commerce if his attention has been drawn to the fact that centres properly administered and supervised where adventure sports are conducted are unable to secure insurance cover in terms of public liability; if his attention has further been drawn to the potential consequences of this in view of the Government drive to encourage participation in this area; and if he will make a statement on the matter including proposals to rectify the situation.

I propose to take Questions Nos. 22, 40, 47, 49, 74, 75 and 76 together.

While there is a wide range of both life and non-life insurance products available generally, I am aware of certain difficulties in the areas referred to by the Deputies.

It is unfortunately the case that equestrian, community, voluntary and sporting groups' activities do give rise to a particular risk of injury to and claims by members of the public. Likewise, the particular problems of certain inner city areas of Dublin give rise to high claims and, therefore, premium costs. The cost of claims can only be met by insurance companies if an adequate premium is forthcoming to cover the risk involved.

My primary responsibility as the insurance supervisory authority is to ensure that companies meet their statutory reserves and solvency requirements and as such I must respect the right of insurers to accept or reject risks in the light of their underwriting experience.

An arrangement exists with the Irish Insurance Federation to assist where difficulties are experienced in obtaining liability insurance. Before a case can be referred to the federation it is necessary that at least half the market (including Lloyds) be approached without success. Evidence of these approaches together with a brief synopsis of the risk should be forwarded to the Insurance Section of my Department who will refer the matter to the federation. It must be emphasised that no guarantee can be given that cover will be forthcoming in every case referred in this manner to the industry representative body.

In relation to property and related insurance, I am not aware that the unavailability of insurance cover has led to the widespread closure of business in particular areas. Following discussions in February 1987 between the Inner City Development Steering Group of Dublin Corporation and the Irish Insurance Federation, the federation emphasised that:

—insurers do not regard any area in Dublin City as a "no-go area" for the purposes of providing cover; each case is assessed on its own merits, but a very few risks are genuinely uninsurable;

—city centre social problems which give rise to high claims and premium costs are neither within the control of insurers nor unique to Dublin; such problems and their consequences are, if anything, more acute in Britain and elsewhere;

—claims and premiums are directly and closely linked; premiums cannot be reduced unless and until claims fall.

In cases where property cover cannot be obtained despite reasonable efforts to place the risk in the Irish market, the Insurance Section of my Department should be contacted with the details. The Irish Insurance Federation's Property Standing Committee is prepared to reexamine such cases on the strict understanding that they cannot guarantee to provide cover.

Third party motor insurance is ultimately available through the mechanism of the Declined Cases Agreement.

The reduction of high insurance costs is an integral part of the Government's Programme for National Recovery, and significant measures are already in train to tackle the problems of cost and availability. Insurance industry representatives have assured me that reductions in insurance premiums will follow the introduction of an improved framework and I will ensure that they live up to their promises to ultimately benefit consumers.

The Blue Book detailing results for 1986 was published on 6 January 1988. The 1987 results are expected to be published during the final quarter of 1988.

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