Mr. Brian Hanley:

Our very broad membership is reflective of the challenge across all aspects of society. The Cathaoirleach asked about things that the committee members can do. There is a lot of potential in the new action plan for insurance reform. It will be up to TDs and Ministers to put the flesh on the bones of that plan and make it something that will ultimately reduce premiums and increase competition. The committee has invited us in today and shown an interest today in this matter. Potentially, we will see legislation later in the year to amend the personal injury guidelines. It is important in that context for the committee to understand the breadth and depth of the people impacted by what will come.

It is hard to believe the increases that are happening in so many sectors. Competition is undoubtedly a part of it. There is also an extent to which they are doing it because they can. You will often hear that the reason that premiums have gone up is that there has been an increase in turnover. However, turnover does not equate to risk; footfall does. If the number of people going in has increased, you could understand it but if all the costs have just gone up, that is not a justification. Bear in mind that the awards are flat; they have stayed at 2021 levels in the guidelines. There has not been inflation in awards and there has not been an increase of footfall. It is very easy for them to turn around to the local pub, the local shop, the local charity or whatever it is and say that its turnover has gone up. It has nothing to do with risk. They do it because they can.

My chair made the point earlier that the committee has a lot of power in what it can say to insurers. There will be auto-enrolment coming up, which will mean a huge windfall for insurers down the road in terms of the pension thing and so on. They have a long list of things they would like to get from Government and politicians and so on. It is not unreasonable, after all the Government has done, for it to say that it needs to see meaningful and sustained savings. All of this is independently measured and verified by the Central Bank. We do not need a "he said, she said" about this. That is what has been great about previous reforms - we have independent data to back up what we are saying in order for the Government to make informed decisions.

Yes, we are seeing excuses like turnover, footfall and things like that. They have the ability to do it because they feel they can. There is a degree of impunity about it. If you are in one of the 20% or 30% of sectors that have only one underwriter, there is no pressure on you to do anything about your premiums. You can charge what you want because you are the only show in town. That is why our recommendations are around increasing competition, having the CCPC look at the income and attracting new entrants into the market to add some value.