Brendan Griffin
Ceist:60. Deputy Brendan Griffin asked the Minister for Finance if he will address a matter (details supplied) regarding the cost of insurance; and if he will make a statement on the matter. [25792/20]
Amharc ar fhreagraWednesday, 23 September 2020
Ceisteanna (60)
Freagraí scríofa
Let me say at the outset that I am very much aware of the problems faced by many businesses in the leisure industry, 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, 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 doing so.
As the Deputy will appreciate, there is no single policy or legislative fix to remedy the cost and availability of insurance. What is needed is for the ongoing reform measures to be implemented and to quickly bear fruit. In this regard, the new Programme for Government identifies a range of issues that the Government will prioritise so as to benefit consumers including small businesses such as those in the leisure sector 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 in December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the executive board of the Judicial Council during Quarter 4. 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 indicated that if award levels come down so will premiums charged by its members. I believe that this is a very important statement and this Government intends holding the insurance industry to this commitment.
In conclusion, I wish to emphasise that insurance reform remains 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 proposed sub group of Cabinet Committee on Economic Recovery and Investment in terms of prioritising delivery on the commitments to continuing insurance reform.