Dáil Éireann Debate, Thursday - 28 April 2022
76. Deputy Seán Haughey asked the Minister for Finance if he will provide a report on his engagement with the insurance industry to address the difficulties of access to affordable insurance faced by some businesses. [20563/22]
Amharc ar fhreagraInsurance reform is a key priority for this Government. The Cabinet Committee Sub-Group on Insurance Reform was established to prioritise this issue, and published the Action Plan for Insurance Reform in December 2020. The Sub-Group is overseeing the implementation of this reform agenda, and meets regularly in this regard. The Action Plan sets out 66 actions to protect consumers and improve the businesses environment in the insurance sector.
In terms of engagement, there has been engagement with industry – both individual insurers and Insurance Ireland – on an ongoing basis. [Minister of State Fleming] has met individually with the CEOs of the eight main insurers in the Irish market twice since the adoption of the Personal Injuries Guidelines in April 2021, in order to hold them to account on their commitments to pass on all savings from the insurance reform agenda to customers.
In these meetings, and in his ongoing engagement with industry, Minister of State Fleming has consistently stressed the importance of insurers reflecting lower claims costs through reduced premiums, and the need for insurers to respect the Guidelines by not settling for amounts that are inconsistent with them. These engagements have been positive, with insurers confirming their commitment to passing on savings from the Guidelines, and are adhering to them in their direct settlements. During these meetings, Minister of State Fleming also impressed upon insurers the need to expand their risk appetite into ‘pinch-point’ sectors that are experiencing issues with availability and affordability of cover, particularly high-risk/high-footfall areas.
Another development of the Action Plan for Insurance Reform was the creation of the new Office to Promote Competition in the Insurance Market within the Department of Finance. The role of the Office, which is chaired by Minister of State Fleming, is to assist in reducing insurance costs by promoting competition in the Irish insurance market. Since its establishment, the Office has held over 70 meetings with a wide range of key stakeholders, including representative bodies, providers and other civic society groups, to understand the gaps in the Irish insurance market. The Office has been working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. Officials have developed a customised proposition for potential market entrants and have identified a shortlist of specific targets to engage intensively with. This will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market. This will hopefully assist those businesses with a lack of choice when it comes to insurance providers.
Work remains ongoing across Government to deliver the remaining elements of the Action Plan, in order to improve the affordability and availability of insurance for businesses in particular. Engagement will continue with the insurance industry to ensure that they are passing along savings made, in the form of more affordable premiums.
