Seán Kyne (Galway West, Fine Gael) | Oireachtas source

I thank Deputy Fitzpatrick for raising this very important Topical Issue matter and I am delighted to hear that matters have been rectified since it was put down today. Thankfully, the staff and management of Air Bound Trampoline Park have received good news, which is excellent, although I understand where the Deputy is coming from in terms of ensuring this sort of thing does not happen in the future.

I am taking this matter on behalf of the Minister of State at the Department of Public Expenditure and Reform, Deputy Michael D'Arcy. It is important to be clear on the matter of responsibilities. The Minister for Finance is responsible for the development of the legal framework governing financial regulation. Neither he nor the Central Bank of Ireland have the power to direct insurance companies on the pricing or provision of insurance products. Indeed, the EU framework for insurance expressly prohibits member states from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These are considered by insurance companies on a case-by-case basis.

As a result, the Minister for Finance is not in a position to intervene in the case of this or any company. It is also important to say in this instance that the type of activity conducted appears to be of a particularly risky nature and, therefore, requires the application of the highest possible safety standards at all times in order to avoid accidents and potential claims. Insurers will generally give some credit for such measures when making a decision to provide cover and at what price. In addition, while I have considerable sympathy for a company that finds itself in this position, I am strongly of the view that, while there is no statutory requirement to have a minimum level of public liability insurance cover, it would be unwise to conduct any type of business in its absence.

That said, both the Minister for Finance and the Minister of State, Deputy D’Arcy, in their roles in financial services and insurance are aware of recent problems in regard to the provision and price of insurance for businesses generally. Indeed, that is why the Cost of Insurance Working Group, which was established by the then Minister for Finance, Deputy Michael Noonan, and which is currently chaired by the Minister of State, Deputy D'Arcy, chose to examine the employer liability and public liability insurance sectors in its ongoing second phase, following the publication of the report on the cost of motor insurance in January of this year.

Some of the issues which have been raised by businesses and other stakeholders consulted during this second phase include: the significant increase in the cost of employer liability and public liability insurance; the lack of competition in the employer liability and public liability insurance market; frustration with the inconsistency of personal injury awards; high costs in challenging claims through the court process; and the prevalence of fraudulent and exaggerated claims. The working group is currently in the process of finalising its second phase report on employer liability and public liability, which will follow a similar format to the report on the cost of motor insurance, and thus will include an action plan with associated actions and deadlines for implementation. The final report is expected to be submitted to the Minister for Finance for approval by the end of the year and subsequently published in January, following approval by Government. It is envisaged that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and co-operation from all relevant stakeholders, will achieve the objectives of delivering fairer employer liability and public liability premiums for businesses, and a more stable and competitive insurance market, without unnecessary delay.

Finally, and notwithstanding the strict demarcation of responsibilities already referred to, Department of Finance officials today contacted Insurance Ireland in regard to the specific case which the Deputy has outlined. Insurance Ireland responded to confirm that it would be agreeable to engaging with the particular insurance provider concerned if all appropriate details could be submitted to it. In this regard, Insurance Ireland operates a free insurance information service for those who have queries, complaints or difficulties in regard to obtaining insurance, and the relevant contact details are on its website.

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