Dáil Éireann Debate, Tuesday - 13 October 2020
83. Deputy Brendan Griffin asked the Minister for Finance the measures he is taking to address the price and lack of choice for insurance cover for walking and mountaineering guides; if his attention has been drawn to the difficulties in the sector; and if he will make a statement on the matter. [30145/20]
Amharc ar fhreagraLet 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, including those in the tourism sector, such as walking and mountaineering guides. However, as this is a commercial matter, 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. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. What Government can do is to make reforms designed to improve matters and this is the focus of this Government.
In that regard and as the Deputy will appreciate, there is no single policy or legislative fix to remedy the cost and availability of insurance issue, however insurance reform is a key policy priority for this Government and this is reflected in the Programme for Government (PfG). There are a number of areas that require reform and this is why making progress on these problems requires a ‘whole-of-Government’ approach as recognised in the PfG. This lays out specific commitments that are aimed at addressing consumer and business concerns on the cost of insurance. These include increasing transparency on claims; reviewing duty of care legislation; looking at how to further enhance the role of the Personal Injuries Assessment Board; minimising the scope for questionable claims; and increasing competition in the market.
Implementation of this agenda will be a key issue for myself and Minister of State Fleming as well other members of Cabinet, especially those that will be working on this through the recently established Cabinet Committee on Economic Recovery and Investment’s Sub-Group on Insurance Reform. This Sub-Group held its inaugural meeting on 1 October and identified a number of key deliverables to be progressed before the end of 2020. The Sub-group is chaired by the Tánaiste, and also includes myself, Ministers McGrath, McEntee, and O’Gorman, together with Ministers of State Troy and Fleming as standing members. I believe that this Sub-Group provides the best opportunity to address the cost and availability of insurance through a cross-Governmental response. We will build and expand upon the previous commendable work done by the Cost of Insurance Working Group.
As you will be aware, a number of important reforms have already taken place, and the impact of these is reflected in the recent CSO data which indicate that the cost of private motor insurance is now almost a third cheaper than at its peak in July 2016. The Sub-Group will focus on those reforms needed to ensure that similar reductions in cost can be extended to other areas of insurance, most notably, Employer and Public Liability insurance, which are among the main concerns for businesses such as those mentioned in the question.
Undoubtedly, in that regard, 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 before the end of the year. It is desirable that 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, the Deputy can rest assured that in addition to all the other measures that Government has taken over recent months to support smaller businesses, such as those in the tourism sector, the issue of insurance reform is a key priority issue for this Government. In that context we will continue to seek to ensure that progress is made in this policy area.
