Dáil Éireann Debate, Wednesday - 4 May 2022
140. Deputy Pádraig O'Sullivan asked the Minister for Finance the measures that will be introduced to curb the rising costs of liability insurance (details supplied); and if he will make a statement on the matter. [21756/22]
Amharc ar fhreagraAs the Deputy is aware, neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
I note that the details supplied relate to a recent survey by the Alliance for Insurance Reform on the cost of liability insurance for organisations. I note the important work of the Alliance and my Department has had a number of good engagements with this important stakeholder group. While I would note the survey is a useful indicator, it appears to only survey the Alliance’s own members and therefore cannot be said to be representative of the total market.
The separate National Claims Information Database (NCID), managed by the Central Bank of Ireland, provides the best official statistical basis to assess pricing for employer and public liability insurance due to the breadth and depth of its policy coverage. The NCID collects substantial amounts of verified data on the cost of employer and public liability insurance across all sectors and policies. I would note that according to the first NCID Report on Employers’ Liability, Public Liability and Commercial Property insurance, published last year, many businesses are accessing affordable insurance. The Report shows that in 2019, the average premium for package policies was €2,269, and 93% of all policies had a premium of less than €5,000.
Nonetheless, I do accept that premiums for some businesses and organisations may still be rising. This may be due to particular issues in those sectors, which our Action Plan for Insurance Reform is addressing. The insurance reform agenda is still ongoing and that it may take some time for the benefits of the reforms to feed through to reduced premiums and greater availability of insurance for businesses and other groups.
I would note that the second Implementation Report of the Action Plan, published in March this year showed that insurance reform is progressing well, with some 80% of actions in the Plan now being delivered, and the remaining ones initiated. It is my hope that the cumulative impact of these reforms will be to improve both the cost and availability of insurance for businesses, particularly SMEs, as well as consumers and other groups.
Work is continuing across Government to ensure the implementation of the remaining Action Plan reforms. Priorities for 2022 include:
- reforming the law on occupier’s liability to rebalance the duty of care (Occupier’s Liability Act 1995);
- enhancing the enforcement powers of the Competition and Consumer Protection Commission (CCPC) through advancing the Competition Amendment Bill 2022;
- progressing legislative proposals to reform the Personal Injuries Assessment Board; and,
- reducing insurance fraud, including by introducing revised guidelines for reporting insurance fraud.
We are now committed to working with colleagues across Government to deliver the outstanding actions, with a view to improving the affordability of cover in all sectors, including liability insurance for businesses and other organisations.
