I am aware that a number of sectors in the economy, including the hospitality sector, have reported having difficulties in obtaining insurance cover.
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.
While the provision and the pricing of insurance policies is a commercial matter for insurance companies, this does not preclude the Government from introducing measures that may, in the longer term, lead to a better claims environment that could increase availability and facilitate a reduction in claims costs.
As you may be aware, a task force has been established within my Department to undertake a review of various aspects of policy in the insurance sector. An important element of this review is an assessment of the factors contributing to the increasing cost of insurance. Progress on the review will be overseen by a Working Group on the Cost of Insurance with representatives from all relevant Departments and Agencies and chaired by Minister of State Eoghan Murphy. The Working Group will identify issues that can be addressed on a more immediate basis and also those that require more long-term policy solutions. The first meeting of the Working Group will take place on 20 July with further meetings scheduled for early September and in the coming months.
