At the outset, while I have an appreciation of the specific issue the Deputy raises, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter. In addition, we cannot compel any insurer operating in the Irish market to provide cover to specific individuals or groups, such as those referenced in the question. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
I can assure you that insurance reform is a priority for this Government and I, along with my colleagues, am keenly aware of the pressures that businesses have faced over recent times including the cost of insurance. Those in the tourist sector, such as Jarveys, like all businesses have been significantly impacted by Covid and the Government has brought in a range of support measures to assist at this difficult time.
In regard to the cost of insurance, the recently-launched Action Plan for Insurance Reform contains a range of deliverables, including:
- increasing market transparency through the National Claims Information Database (NCID), including for employer and public liability insurance;
- reviewing the duty of care legislation;
- providing for the Judicial Council’s accelerated adoption by 31 July 2021 of new personal injuries guidelines to replace the Book of Quantum;
- consideration by the Department of Justice of the Law Reform Commission’s recent Report on Capping Damages in Personal Injuries Actions;
- looking at how to further enhance the role of the Personal Injuries Assessment Board; and,
- making proposals on increasing competition in the Irish insurance market.
Recognising that many businesses and self-employed persons need to see the impact of these reforms as soon as possible, the Action Plan contains 66 actions, 95% of which are due to be completed by the end of 2021. The focus is clearly on completing these actions in the short to medium term. I am hopeful that key reforms around personal injury awards may start to have an impact during this year on the pricing and availability of insurance.
With regard to increasing competition, the measures outlined in the Action Plan will undoubtedly reduce barriers to entry into the Irish insurance market. I would also highlight to the Deputy that an Office to Promote Competition in the Insurance Market has now been established in my Department. This will provide for a more joined-up policy response on promoting competition in this sector, as well as provide for greater information to assist consumers and businesses. Minister of State Fleming will report on its work to the Cabinet Sub-Group on Insurance Reform.
In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention, along with Minister of State Fleming, to work with our Government colleagues to ensure that implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses and voluntary groups across Ireland.
