Louise O'Reilly
Ceist:326. Deputy Louise O'Reilly asked the Minister for Finance if there will be legislation brought forward to reduce insurance costs for businesses in view of the crippling cost of business insurance [20397/20]
Amharc ar fhreagraThursday, 30 July 2020
Ceisteanna (326)
Freagraí scríofa
Let me say at the outset that I am very much aware of the problems faced by many businesses in relation to the availability and affordability of public liability insurance. However, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, and neither can we compel any insurer operating in the Irish market to provide cover to community groups or organisations, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which 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. In addition, the Government has no direct influence over award levels, as awards are a matter for the Judiciary.
As the Deputy will appreciate, there is no single policy or legislative fix to remedy the cost and availability of insurance issue. Reforms have been made and we have seen some improvement in some aspects of the insurance market but what is now needed is for the ongoing reform measures to be implemented and to quickly bear fruit. In this regard, the Programme for Government identifies a range of issues that the Government will prioritise so as to benefit consumers, including small businesses, as well as in the various community groupings and facilities throughout the country. This cross-Departmental insurance reform agenda, which I believe builds and expands upon previous work done by the Cost of Insurance Working Group, is a priority for this Government and in particular for my Department.
In terms of addressing insurance premiums for small businesses, particularly those in the leisure sector, a necessary step is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council last December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Judicial Council by 28 October. The guidelines could play a role in the lowering of award levels and also could lead to a more consistent application of making awards in courts. Insurance Ireland has commented that if award levels come down so will premiums charged by its members. I believe that this is a very important commitment and this Government intends holding the insurance industry to their previous statements in this regard.
In conclusion, I wish to emphasise that insurance reform is a priority for the Government and as noted above this is reflected in the Programme for Government. This is an issue I, as Minister for Finance, along with my Departmental colleague, Minister of State Fleming, will focus on. In doing so we will be cooperating with our Ministerial colleagues that will be participating in the Cabinet Committee on Economic Recovery and Investment in terms of prioritising the commitments on insurance reform.