Noel Grealish (Galway West, Independent) | Oireachtas source

Last week the Rural Independent Group brought a motion before the House regarding the high costs of motor insurance and today I raise an issue of equal importance, namely, the spiralling cost of business insurance.

While Brexit is probably the number one issue of concern at the moment, the cost of insurance affects every single Irish business from a small shopkeeper to a large exporter. Many small business owners tell me this is the number one issue that is likely to force the closure of their business in the next two years, affecting their viability and ability to grow and expand. While I welcome the establishment of the cost of insurance working group and the publication of its report, action is not happening quickly enough and many businesses will close before there is a real reduction in insurance premiums, unless the Government takes decisive action now. Last week I listened to Michael Magner, owner of the Vienna Woods Hotel in Cork, who is also chairman of the insurance committee of the Irish Hotels Federation. While being interviewed on the "Today with Sean O'Rourke" show, he stated his own insurance costs had risen from €10,000 in 2006 to €86,000 in 2016 and to a staggering €156,000 last year. In my own constituency, McCambridge's of Galway, which is one of the longest-established businesses in Galway city, has seen its total insurance bill rocket from €20,000 in 2015 to €50,000 in 2016 and then to €102,000 in 2017. These are just two examples, I could list hundreds of horror stories. No business can sustain this.

Such is the concern that after a decade and a half, the Alliance for Insurance Reform was relaunched in January to represent businesses, community and voluntary organisations amid concerns that the spiralling cost of cover is causing firms like shops and pubs to go out of business. This group is headed up by Pat McDonagh of Supermac's, who has long been critical of the compensation culture that is to blame for much of the rising cost. He has used closed-circuit television, CCTV, in his business to try to reduce the number of fraudulent claims but he is still frustrated by the fact that claims are often settled by insurance companies without consultation, which in turn encourages others.

The number and diversity of businesses and voluntary organisations that have joined the Alliance for Insurance Reform since it relaunched is a clear indication of the level of concern among business owners about this issue. The alliance is calling for an urgent response from the Government to address the level of awards and the effective bypassing of the Personal Injuries Assessment Board as a means for dealing with claims. It wants to prevent exaggerated and misleading claims being pursued and settled and real transparency on how premiums are calculated, including information on how and why claims are settled.

Can the Taoiseach outline exactly what clear and decisive action is being taken right now by the Government to address this issue, which is affecting the viability of so many businesses and voluntary groups across the country?

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