Frank O'Rourke (Kildare North, Fianna Fail) | Oireachtas source

I thank all of the witnesses for their presentations. I have worked in the private sector for years and I am a massive supporter of the SME sector. I work very closely with businesses in my constituency. I support them and promote the idea of them working together. Running a business is difficult at any stage but it has been particularly difficult during the past eight years. In such circumstances, I endorse and agree with everything that has been said by the witnesses.

The Acting Chairman has said that Ireland is no different from other countries in terms of insurance. I am of the view that there is a reduced risk of accidents occurring here on foot of the fact that Ireland is an island nation and, as a result, has a smaller population, a smaller number of cars, etc., and everything ispro rata. One could make the argument that the risk is reduced and it certainly has not increased by 40%, which is the statistical figure that has been stated all morning.

I take on board everything that Ms Callan said. We need to do everything that we can - and I am tired listening to myself saying so at this stage - to make the insurance industry more transparent and more accountable, to ensure that there will be consequences for insurance companies and to impose penalties on them in respect of their unacceptable behaviour with regard to individuals and businesses. Ms Callan mentioned certain issues and suggested that we may be feeding in to this problem. As I have said all day, I am concerned that we are nearly justifying or explaining the bad and unacceptable behaviour demonstrated by insurance companies in increasing policies premiums. Such increases cannot be justified because all of the issues have existed for some time and date back years. That is definitely not an excuse failing to take action. I am hugely proactive and believe we should do everything we can - collectively and by means of a partnership approach - to resolve this problem in order that we never need to have this discussion again. There is no justification for the increase in premiums in the past three years and, in particular, the past year because the current issues have existed for ten or 15 years in every sector whether it is claims or whatever.

In terms of business, I know of one haulage company that had to set up outside of Ireland. All of the vehicles had to be sent abroad to be registered and tested and then brought back here. Even though the company had made no claims and all of its details remained the same, the cost of its insurance premiums doubled in one year. If it had paid the premiums, the only option would have been to fold and close the door. The company employed 25 people in a local economy. It is frustrating and annoying to speak about this situation because there was no justification to increase the premiums.

I like the proposal made by Ms Callan for the novel approach of care not cash. I did not hear the terms before but I like it because it is a good idea and takes the onus away from euro or pound signs appearing in front of one's eyes when an accident occurs. When an accident occurs, a minority of people think, not so much "How badly injured am I?" but rather "How much can I get from a claim?" A claims culture has always existed but it still does not justify increased premiums. The claims culture needs to be dealt with head on by tight legislation or regulation but that is still not an excuse for what insurance companies are doing at present.

Senator Conway-Walsh mentioned the outstanding 67 action points put forward by the MIAB and the fact that the current discussion about the insurance industry proves it had not done its business. I would take a slightly different tack by saying that while the MIAB was in existence - this is what I have been informed by industry - it may not have completed its job but we do not need the current discussion. It has been strongly indicated to me by people I meet, engage with and represent from all walks of life, that the disbandment of the MIAB has been a contributing factor in the context of the issue we are debating. We need, as a matter of urgency, to reintroduce the MIAB or establish an equivalent thereof that will have teeth.

Increased insurance premiums are crippling businesses that are already faced with pressures imposed by paying wages and rates. Also, there is less money being spent in the economy so turnover is down. Let us remember that the SME sector is the lifeblood of the economy because we know the number of people it employs and the returns made to the Exchequer. Yesterday, we talked about multinationals that are great and needed but the SME is hugely important. Increased premium constitute a major issue for the SME sector. If the matter is not resolved, then the economy will be in serious bother.

Earlier, the Chairman said that Insurance Ireland will attend one of our meetings in the coming days. Today, I have substituted for a colleague and, unfortunately, do not attend meetings of this committee regularly. Perhaps Mr. Fielding made two or three points before I arrived.