Michael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I compliment Deputy Michael McGrath for tabling this motion because it is a very serious issue.

Many businesses have been looking at the colossal rise in insurance costs in the past few years. When there was a halt in motor insurance cost rises in the past week or so, the claim was made that the strategy dealing with the spiralling cost of insurance was working, but it is on the back of increases of 34% or 35% in a 12 month period. Businesses, in particular those with a major footfall in retail units, restaurants and nightclubs, are telling me that they simply cannot get insurance. Is it correct that in respect of some categories of licensed premises, a number of underwriters have left the market which has now been reduced to one or two providers? If so, it is a damning indictment of the entire insurance industry and the fact that conditions were created which allowed them to leave the market and businesses completely exposed in making decisions to go without insurance. In respect of other policies, people are having to fork out the first €10,000 of any claim. This is not sustainable. I ask the Minister to address the issue of underwriters leaving the market and to explain how the Government permitted circumstances to develop where those providers left. The cost of motor insurance and, in particular, the cost of insurance for businesses are having a crippling effect and will have a knock-on effect on employment in the sectors mentioned.

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