Dáil Éireann Debate, Tuesday - 30 November 2021
206. Deputy Brendan Griffin asked the Minister for Finance if his Department will encourage Irish public bodies to provide insurance for community groups given that there are only two insurers left in this market; and if he will make a statement on the matter. [59078/21]
Amharc ar fhreagraI note that the company referred to by the Deputy is an independent entity which is subject to the same rules as all other insurers in the Irish market, including the Solvency II Directive.
While I share the Deputy’s concerns and understand the issues facing many community groups across the country regarding the cost and availability of insurance, he will appreciate that, as Minister for Finance, I am not in a position to comment on matters that are a commercial decision for that company.
Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is also reinforced by Solvency II Directive.
Nevertheless, the Government is acutely aware of the concerns of individuals, businesses, and voluntary/community groups across the country regarding the cost and availability of insurance, and is working to address them through the Action Plan for Insurance Reform. While work remains ongoing across Government Departments to deliver these reforms, it is important to acknowledge that significant progress has already been made. The first Action Plan Implementation Report, published in July, show that 34 of the 66 objectives included in the Action Plan have been completed.
One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines some six months ahead of schedule. Early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development; it is my hope that this trend will continue and result in lower costs for businesses. As the insurance reform agenda progresses, we will continue to hold the industry to account on its commitments to pass on savings from the Guidelines, and other elements of the reforms, to customers. Minister of State Fleming, in his recent meetings with the CEOs of the largest providers in the domestic market, has emphasised the need for firms to reduce premiums and increase their risk appetite to provide cover in new areas.
A further element of the Action Plan with particular relevance to community groups involves reviewing the Duty of Care. The Minister for Justice, who is leading on this action, has noted to Government the intention to bring forward legislative proposals to reform the law in this area. The planned rebalancing of the duty of care, with a view to applying a common-sense approach to risk, is of particular relevance to the sector as it will help address so-called ‘slips, trips and falls’. My officials understand from their Department of Justice colleagues that these proposals are at an advanced stage.
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 the implementation of the Action Plan can continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country.
