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Insurance Industry

Dáil Éireann Debate, Thursday - 7 April 2022

Thursday, 7 April 2022

Ceisteanna (247)

Holly Cairns

Ceist:

247. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to reduce the cost of insurance for the hospitality sector; and if he will make a statement on the matter. [19157/22]

Amharc ar fhreagra

Freagraí scríofa

While neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups, including the hospitality sector.

The whole-of-Government approach being taken through the Action Plan for Insurance Reform which sets out 66 actions which aim to improve both the cost and availability of this key financial service, particularly for businesses. The Second Implementation Report, which was published on 1 March 2022, shows that 80 per cent of these actions have now been delivered.

Among the key developments so far are the implementation of the new Personal Injury Guidelines, which significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Recent data from the Personal Injury Assessment Board (PIAB) show that award levels have fallen by an average of 40 per cent, providing stability and certainty to the claims environment.

As part of the effort to increase competition, the Department of Finance is working closely with the IDA to broaden the supply of insurance in the Irish insurance market, including in areas which have been identified as ‘pinch-points’, such as the hospitality sector as highlighted by the Deputy. The IDA is currently commencing a multi-phased engagement process with targeted underwriters and will seek to leverage the achievements of the Government insurance reform agenda to date.

In terms of upcoming issues, rebalancing the duty of care is now a high priority action for Government and is being led by my colleague, Minister McEntee and the Department of Justice. Overhauling this legislation should help to address the issue of “slips, trips and falls”, which are particularly prevalent in high-risk/heavy-footfall areas such as hospitality. Minister McEntee has noted in the Justice Plan 2022, published last week, her intention to bring forward legislative proposals to reform the law in this area.

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.

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