Seán Canney (Galway East, Independent) | Oireachtas source

I welcome the opportunity to speak on this very important issue. The cost of insurance is always on people's minds, whether it be car insurance, home insurance or business insurance. People do not know from year to year what their premium will be. They have no stability in terms of the cost of insurance, whether it is home insurance or other insurance. The idea that a person can go online to get a better deal when he or she gets his or her motor insurance renewal is fine, but those who do not have that access yet, such as some older people or those who do not have the right equipment to get online, accept the premium they get. However, this issue of dual pricing and loyal customers paying over the odds for remaining with their insurer flies in the face of fair competition. It needs to be examined.

I know of community services and community groups that are trying to keep their insurance in place to protect themselves as community voluntary groups. They are finding it more difficult year on year to insure the properties they hold on behalf of communities. The pricing seems to be erratic; there is no sense in it. The policies are complicated by the fact that different insurers offer different terms and conditions, so a customer needs to be an expert in insurance to differentiate what he or she is getting and to identify the best offer.

I have received many phone calls about professional indemnity insurance. It is very much needed by every business person, whether they be a sole trader or a big business conglomerate. The cost of professional indemnity insurance is rising substantially. From the point of view of the Minister of State, Deputy Fleming, who is present, he will see, and is seeing, increases in the cost of providing projects because of the increasing cost of professional liability insurance in the context of public sector contracts and similar situations where such insurance is required. That must be borne in mind.

I refer to public liability insurance and employer liability insurance, the cost of which is going erratically out of control. There have been increases that do not match claims records or whatever. Basically, every year, business people are holding their breath until they see what premium comes in on their insurance. They get different premiums based on the risk they take on themselves. Some of those risks are unacceptable and are putting businesses in jeopardy due to a lack of proper wholesome insurance.

I refer to the issue of flood risk insurance. I know of insurance companies that are refusing to offer flood risk insurance because there is some issue relating to flooding in a particular area even though the property in question may not have flooded in 50, 60, 70 or 150 years. If a map now shows there is a flood risk in the area, the insurance companies will refuse to offer flood risk insurance. This is causing problems for people who are trying to sell their properties to upgrade their homes and to have insurance as a safeguard for the future.

It is important that we look at this issue and consider how can we best address it. To be honest, deferring tackling this problem for six months or nine months is not the answer. We need to tackle it head on. The Government has been tipping around the edges of it. Some Deputies may say that we need to have competition and make the market attractive for insurance companies to come in and trade here. That is all very fine, but I believe that the Government and Members, as legislators, need to make sure that the cost of insurance is fair for the people who are paying for it. Insurance customers need to know what they are getting and get it at a fair price in terms of money and risk. This is something at which this House needs to look very seriously straight away.

Consideration should also be given to the other element of the issue, that is, the claims scenario. I compliment Peter Boland and the Alliance for Insurance Reform on their efforts to highlight all that is wrong in that particular area in terms of claims being paid out.

Now is the time to open this issue up and have a serious debate about it. We should ensure that the measures that are put in place are sustainable and do not have a negative impact on people.

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