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Insurance Industry

Dáil Éireann Debate, Tuesday - 10 May 2022

Tuesday, 10 May 2022

Ceisteanna (279)

Colm Burke

Ceist:

279. Deputy Colm Burke asked the Minister for Finance the details of his Department's plans to ensure that recent insurance reforms have a lasting effect on liability premiums paid by business considering 42% of organisations say that insurance premiums are threatening their future; and if he will make a statement on the matter. [23280/22]

Amharc ar fhreagra

Freagraí scríofa

I understand that the Deputy is referring to the findings of a survey conducted by the Alliance for Insurance Reform during April 2022. While the survey is an indicator, I would note that it appears to only survey the Alliance’s own members and therefore cannot be said to be representative of the total market.

The National Claims Information Database (NCID), managed by the Central Bank of Ireland, collects substantial amounts of verified data on employers’ and public liability insurance across all sectors and policies. 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, 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 most recent Action Plan implementation report, published in March 2022, shows that some 80 per cent of actions are now being delivered, with the remainder initiated. Given the increasing priority and pace of reform under the Action Plan, it is necessary for the insurance industry to pass on benefits to customers.

Both Minister of State Fleming and I have been clear on these points and have been holding the insurance sector to account on commitments made.  In this regard, 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 new Personal Injuries Guidelines. In these meetings, and in 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 that they are adhering to them in their direct settlements. During these meetings, Minister of State Fleming emphasised to insurers the need to expand their risk appetite into ‘pinch-point’ sectors that are experiencing issues with availability and affordability of cover.

The Action Plan is still ongoing and it may take some time for the benefits of the reforms, such as the Personal Injuries Guidelines, to feed through to reduced premiums and greater availability of insurance for businesses and other groups. Minister of State Fleming and I are continuing to work with colleagues to implement the remaining actions as a matter of priority. We will also remain proactive in engaging with industry in order to hold insurers to account, with a view to ensuring that the benefits of the reform agenda are passed on to policyholders, including businesses and other liability insurance customers.

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