Dáil Éireann Debate, Tuesday - 16 April 2019
254. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation if her Department or affiliated public bodies gathers data on the number of SMEs refused insurance quotes from a company for public and employer liability; the number of SMEs which have been refused in each of the years 2013 to 2018 and to date 2019; and if she will make a statement on the matter. [17324/19]
Amharc ar fhreagraMy Department does not collect the type of information being sought by the Deputy. I am advised that the Department of Finance, or the Central Bank of Ireland, who have responsibility for insurance in general, do not collect this type of information either.
While the Deputy is aware that neither I, as Minister for Business, Enterprise and Innovation, nor my colleague the Minister for Finance, nor the Central Bank, can interfere in the provision or pricing of insurance products, it was recognised that the State could play a role in improving the environment within which insurers operate, thus explaining why the Cost of Insurance Working Group (CIWG) was established in July 2016.
The CIWG has produced two reports and various quarterly progress updates on the various recommendations made by CIWG and endorsed by Government. The difficulties facing the consumer, voluntary and small business sector from the high cost of insurance premiums are recognised. In addition, it is also acknowledged that in some cases the survival of a business as a viable entity is being put at peril because of insurance pricing. One of the key areas raised by various stakeholders to the CIWG is the level of awards in this country compared with elsewhere. As a result, the Working Group established the Personal Injuries Commission (PIC) and commissioned it to examine this issue amongst other things. The PIC reported in September 2018 and concluded that soft tissue injuries are significantly higher here than in England and Wales and recommended that action be taken to address this disparity through the establishment of the Judicial Council. The PIC recommended that this body would become responsible for preparing the guidelines on personal injury award levels and would replace the Book of Quantum. In doing this, the PIC believes that the Judicial Council will, in compiling the guidelines, take account of the jurisprudence of the Court of Appeal, the results of its benchmarking exercise etc.
The current position with the Judicial Council Bill is that the Minister for Justice and Equality has advised of his intention to further this Bill with a view to having it in place as soon as possible. In this regard, it recently completed Committee Stage consideration in the Seanad. Alongside this, the Law Reform Commission has included the subject of capping damages in personal injuries litigation in its draft 5th Programme of Law Reform, and I understand that this work will begin shortly. It is hoped that if there was a significant move in this area, it could have an impact on insurance pricing and could also help attract new entrants into the market. Such outcomes would be of benefit to all concerned and in particular to small businesses.
