Dáil Éireann Debate, Thursday - 8 September 2022
412. Deputy Paul Murphy asked the Minister for Finance the action that is being taken to alleviate the pressure in terms of high insurance costs for early childhood care and education scheme childcare providers. [43973/22]
Amharc ar fhreagraAt the outset it is important to note that 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) which expressly prohibits Member States from doing so.
Nonetheless, this Government recognises the concerns felt by many groups, including the childcare sector, regarding the cost and availability of insurance, and has therefore prioritised insurance reform. As the Deputy may be aware, in March 2022 the Government published the second Action Plan for Insurance Reform Implementation Report, which shows that work is progressing well, with 80 per cent of the actions contained in the Action Plan already being delivered.
The Office to Promote Competition in the Insurance Market, chaired by Minister of State Fleming, aims to help expand the risk appetite of existing insurers and explore opportunities for new market entrants in order to increase the availability of insurance. The Office is working with IDA Ireland to help leverage the ongoing insurance reforms with the aim of targeting new entrants to the Irish market or encouraging current incumbents to expand into undeserved areas. I understand that a major international insurance company has recently expanded into the playcentre area and has underwritten a group scheme in this sector. This is a very positive development and may lead to other providers similarly expanding their product lines. In addition, Cabinet recently approved proposals to overhaul the duty of care to address issues associated with ‘slips, trips and falls’, which predominate in footfall-heavy sectors such as childcare. I am hopeful that these developments will, by building upon the momentum of the insurance reform agenda, have further positive impacts on the insurance market.
Finally, I wish to assure the Deputy that it is my intention to work with my Government colleagues to ensure that implementation of the remaining elements of the Action Plan can have a positive impact on the affordability and availability of insurance across all sectors in the economy, including the childcare sector.
