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Insurance Costs

Dáil Éireann Debate, Wednesday - 18 April 2018

Wednesday, 18 April 2018

Ceisteanna (32)

Maurice Quinlivan

Ceist:

32. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation her plans to address the rising cost of doing business here, particularly regarding the cost of insurance for business. [16826/18]

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Freagraí scríofa

Despite intense competition, the trajectory of Ireland’s competitiveness performance is positive. Improved competitiveness is reflected in strong employment growth across sectors and regions. On the major cost headings, such as labour, property and tax, the National Competitiveness Council has reported in recent years that Ireland is a relatively cost competitive location in which to do business.

However, there is no room for complacency. In the period prior to the financial crash we did not pay sufficient attention to our cost base and let our international competitiveness erode. Nobody wants to repeat that. As the economy continues to grow, there is a role for both the public and private sectors to proactively manage the controllable portion of costs. As Minister for Business, Enterprise and Innovation, my objective is to create the best possible environment for enterprise, entrepreneurship and investment across all regions. My colleague, the Minister for Finance, has responsibility for insurance regulation.

On the cost of insurance for business, price inflation for insurance, particularly motor insurance, increased significantly in the period 2014 to 2016. The rate of increase eased in 2017 and the most recent CSO data for March 2018 shows insurance prices are now 5% lower than last year with motor insurance prices 13% lower.  The price of motor insurance has been falling every month since April 2017.

While the CSO data shows greater price stability, I appreciate the figures represent an average and there may be enterprises and consumers still seeing increases.  The problem of rising insurance premiums for enterprise was the impetus for the establishment by the Minister for Finance of the Cost of Insurance Working Group in July 2016. The ongoing implementation of the Report on the Cost of Motor Insurance, in parallel with the implementation of the Working Group's Report on the Cost of Employer and Public Liability Insurance, will make a difference to the pricing of insurance.  I am confident that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and cooperation from relevant stakeholders, will achieve the objectives of delivering fairer premiums for all and improving the cost of doing business. 

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