Michael Healy-Rae
Ceist:138. Deputy Michael Healy-Rae asked the Minister for Finance his views on the cost of business insurance (details supplied); and if he will make a statement on the matter. [26354/18]
Amharc ar fhreagraTuesday, 19 June 2018
Ceisteanna (138)
Freagraí scríofa
Both I and the Government are very conscious of the difficulties that increased insurance costs are having on the business sector and we continue to prioritise action in this area.
Following the publication of its Report on the Cost of Motor Insurance in January 2017, the Cost of Insurance Working Group undertook an examination of the Employer Liability and Public Liability insurance sectors in its second phase of work. While a number of the recommendations in the Motor Report are relevant to the area of business insurance – in particular, the recommendations regarding the Book of Quantum, the Personal Injuries Assessment Board and the establishment of the Personal Injuries Commission – it became clear in preparing the Report on the Cost of Motor Insurance that there was also a pressing need to examine the drivers for the rising cost of business insurance.
The second phase work culminated in the publication on January 25th 2018 of the Report on the Cost of Employer and Public Liability Insurance , following its approval by Government. This new Report makes 15 recommendations with 29 associated actions to be carried out, detailed in an Action Plan contained in the Report with agreed timelines for implementation.
The recommendations, covering three main themes, include actions to:
- Increase Transparency: enhance levels of transparency and improve data sharing and collection processes,
- Review the level of damages in personal injury cases: request that the Law Reform Commission undertake a detailed analysis of the possibility of developing constitutionally sound legislation to delimit or cap the amounts of damages which a court may award in respect of some or all categories of personal injuries, and
- Improve the personal injuries litigation framework: through a number of measures, including:
a. ensuring potential defendants are notified in sufficient time that an incident has occurred in relation to which a claim is going to be made against their policy;
b. tackling fraudulent or exaggerated claims; and
c. ensuring suitable training and information supports are available to the Judiciary to assist in the fair and consistent assessment and awarding of damages in personal injury cases.
All 29 actions are scheduled to be implemented before the end of 2019, with 26 due for completion this year. The fifth Quarterly Progress Update on implementation was published on 11 May and shows that in respect of the actions from the Report on the Cost of Employer and Public Liability Insurance due for completion in Q1 2018, all eight deadlines have been met. Both of the primary Reports and all of the quarterly updates are available on the Department’s website, within “The Cost of Insurance Working Group” sub-section of the main “Insurance” section.
As the issue of insurance costs is an important policy area, the Working Group will continue to focus on implementing the recommendations of the Report on the Cost of Employer and Public Liability Insurance in parallel with implementing those from the 2017 Motor Report. I am hopeful that the cumulative effects of the completion of the two Reports’ recommendations will include increased stability in the pricing of insurance for businesses.