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

I thank the Leas-Cheann Comhairle for allowing me to raise on the Topical Issue debate the issue of insurance reform and the impact of the cost of insurance to businesses. I work closely with the Business Insurance Reform Group, which is led by Michael Horgan in Newmarket and Declan Ryan from Kenmare in County Kerry. They have put in a great deal of work along with other groups to bring about change to the insurance industry. Business is severely affected by the spiralling cost of insurance. This year more than any other year, people have contacted me who are genuinely concerned about the cost of insurance and have indicated that for the first time ever, they are facing the possibility of having to close their doors in the new year because they cannot sustain the level of insurance premiums being sought to cover their businesses. That is because underwriters are leaving the market and there is a lack of transparency.

I remind the Minister of State that the European Union raided and examined insurance companies some months ago to determine if a cartel was operating within the industry.

At the time, there was much fanfare and co-ordination of reports stating that the Government was making a serious attempt to tackle the spiralling cost of insurance. Where has that gone? What has happened to that European investigation? To where has it drifted off?

Many motions on insurance reform have been moved in this Dáil, and the Minister of State and every other public representative in this House encounter this issue on a daily basis. A huge number of centres are closing, including many play centres, which made it very clear last summer that they would not be able to continue to sustain their businesses due to the spiralling cost of insurance. There was much talk of what insurance reform had done to reduce the cost of car premiums, but that is no longer the case because it is continuing to spiral out of control. Many voluntary organisations, community initiatives and organisations providing services to the State under section 39 have seen their insurance premiums escalate. The problems faced by St. Joseph's Foundation in Charleville, the insurance premium of which went from €140,000 to over €500,000, has been brought to the Minister of State's personal attention. That organisation provides services for the whole catchment area, including both my county and the Minister of State's.

What has happened with the European Commission's dawn raids for tackling insurance? What are the Government's real targets in this area? We have heard many contributions, both in the Dáil and elsewhere, about targets and initiatives tried by the Government. Does the Government accept that many businesses will be forced to close their doors in the early part of 2020 because of the lack of coverage for insurance? Many in the catering industry in particular are considering going without insurance, which is a very dangerous precedent. I ask the Minister of State to address those issues.

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