Dáil Éireann Debate, Tuesday - 27 July 2021
415. Deputy Mary Butler asked the Minister for Finance if he will identify a potential solution to the difficulties in securing public liability insurance for a company (details supplied) which may be reflective of a wider issue affecting small tourism providers since Brexit; and if he will make a statement on the matter. [41064/21]
Amharc ar fhreagraI note that the details supplied by the Deputy refers to insurance for a specific organisation. While I recognise the concerns felt by many businesses across various sectors around the cost and availability of insurance cover, I am sure the Deputy will appreciate that neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, nor do we have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU Solvency II Directive insurance framework.
However, this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. In this regard, the Action Plan for Insurance Reform sets out 66 actions across a number of policy areas. As the Deputy may be aware, the Government recently published the first Action Plan Implementation Report, which shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed.
Among these key achievements has been the implementation of new Personal Injuries Guidelines, which have significantly lowered award levels for many categories of common injuries. In recent meetings, the main insurance firms in the Irish market have indicated to me that they will begin to reduce premiums in response to this development. Minister Fleming will meet with CEOs of the major insurance providers again later this year to review their ongoing response to this and other key reforms.
Another key achievement of the reform agenda is the new Office to Promote Competition in the Insurance Market. Since its establishment, the Office has held meetings with wide range of stakeholders including insurance companies, representative bodies, civil society groups and state regulators on the issues surrounding competition. Minister Fleming will report on a regular basis to the Cabinet Sub-Group on its progress.
The Department is also working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. Officials from both are developing a customised proposal for potential market entrants and are identifying targets to engage intensively with. This will, in the first instance, seek out providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market such as the one you have highlighted.
The Deputy may also be aware that the Central Bank recently published the first National Claims Information Database (NCID) report on employers' liability (EL), public liability (PL) and commercial property insurance. It showed that while many businesses in Ireland are accessing affordable insurance, some industries are encountering some difficulties. This report is a rich source of data which will further enhance the transparency of the sector. My officials are also engaging with the Central Bank to consider what enhancements could be made to further improve transparency in the next iteration of this report, so that the impact of the Guidelines can be seen in the EL, PL and commercial property market.
I would like to add that we are already seeing indications that the insurance industry is beginning to respond positively to our reform agenda with the announcement recently by a specialist insurer that it will expand its footprint in Ireland. This is a welcome development, which may prompt other firms to expand product offerings.
In the context of Brexit, it my understanding from the Central Bank that while some UK/Gibraltar insurers decided to withdraw from the Irish market post-Brexit, the vast majority (over 95%) have implemented contingency measures and therefore continue to have authorisation to operate in Ireland.
Finally, I would like to take this opportunity to assure the Deputy that securing 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 to work with my 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, community and voluntary groups across Ireland.
