Vol. 484 No. 3
29 Dr. Upton asked the Tánaiste and Minister for Enterprise, Trade and Employment the new measures, if any, she is planning to lower the burden of insurance costs on economic activity; and if she will make a statement on the matter. [22023/97]
The major determinant of insurance costs is the frequency and costs of claims.
The Deloitte & Touche report on An Economic Evaluation of Insurance Costs in Ireland provides the policy framework for addressing insurance cost and availability issues. A number of the report's recommendations were made in the knowledge that, to successfully pursue their implementation, a process of consultation with the social partners, the insurance industry and other interested parties, including other Departments, was necessary.
In relation to the impact of the insurance cost burden on industry, the report found that small firms pay disproportionately higher insurance premiums than larger companies. The report recommended that small businesses should establish or join affinity groups to strengthen their collective bargaining power with insurers and that they should seek to improve their risk management procedures through greater awareness of and compliance with health and safety standards. Following these recommendations, a number of special affinity schemes have already been successfully established, such as the affinity scheme for the services and self-employed sector of ISME, which was launched earlier this year.
In relation to health and safety matters, the Deloitte & Touche report referred to resource inadequacies of the Health and Safety Authority compared to its UK counterpart. Steps have been taken to strengthen the Health and Safety Authority's resources and the number of inspectors will shortly be increased by the appointment of four additional inspectors. The Health and Safety Authority continues to pursue a programme of education and training to effect a change in attitudes to health and safety in the workplace.
A workplace safety group, under the chairmanship of IBEC, with representation from the ICTU, the Health and Safety Authority and the insurance division of my Department has made recommendations broadly in line with the general thrust of the recommendations of the the Deloitte & Touche report in the areas of accident prevention, claims handling and the promotion of a safety culture in the workplace. The working group is consulting the Irish Insurance Federation with a view to securing recognition for the proposed code of practice.
