Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Deputies for an engaging discussion on the issue of insurance reform. It is clear we all agree on the need for ongoing work to improve both the affordability and availability of all types of insurance. That is the Government's policy intention and that is why we published the action plan for insurance reform in December to drive this agenda forward. While the Government appreciates what the Deputy is trying to achieve with this Bill, it is still not clear from this debate what added value the Bill could provide beyond what the national claims information database currently offers in monitoring claims costs and premium prices. A single Bill cannot be seen as holding the insurance industry to account. Instead, there must be ongoing engagement by the Government's Cabinet committee subgroup and the insurance industry, as well as other stakeholders representing civic society, business and consumers, to ensure that any savings are being passed on. This is the approach Government is driving from the centre.

This Bill will do nothing to help the average consumer or business when they are purchasing insurance. The Government is interested in implementing real reforms which bring tangible benefits. The approach proposed in this Bill is merely a data collecting exercise, an administrative burden and an additional cost on insurers that will only show what alternative data sources already illustrate, namely, whether prices are falling or rising. Whether this is attributable to the personal injuries guideline changes and what premiums may have been in the absence of these guidelines is quite academic. What is clear is that progress in this area needs to be multi-pronged and involve a cross-departmental policy approach. In time, we will be able to draw our own clear, evidence-based conclusions from future national claims information database reports as to the impact of the new guidelines on insurance premiums, along with other aspects of the Government's reform agenda.

The availability of insurance is crucial for businesses, in particular as we emerge from the pandemic and begin rebuilding the economy. The Government has provided unprecedented support to those businesses over the past year and we expect insurers to play their role as society starts to reopen. Even before Covid-19, Brexit and a tightening in the global markets for certain types of insurance, such as professional indemnity insurance, had started creating supply pinch point issues here and worldwide. As the Minister of State with responsibility for Government procurement, I have seen the impact of this, particularly in the construction sector. One of the Government's key aims is to promote competition in the insurance market here, and that includes attracting new providers to enter. Unfortunately, this Bill will not assist in either of those aims. Indeed, if we do not succeed in getting the balance correct, it could send out a message that runs counter to those very objectives.

I note from the debate, and from media coverage over the weekend, reference to a survey hosted on the Sinn Féin website, which indicates that 58% of the 1,363 respondents who received their renewal since the new guidelines came into effect saw their premiums increase. While some customers may still see increases in their motor insurance premium, perhaps because of their individual circumstances, we need to be cautious in drawing conclusions from these figures as it is simply too early to do so. The Minister for Justice is to make a report to Government by the end of this year assessing the impact of the guidelines. Official data have shown that prices have been declining for some time. Accordingly, these findings are at odds with official data published by the CSO and the Central Bank.

While the Opposition may feel that it has had a monopoly on introducing insurance legislation, I remind the House a large volume of insurance legislation has been introduced by Government in recent years, particularly arising from the cost of insurance working group's recommendations. These include the Central Bank (National Claims Information Database) Act 2018 to increase transparency around insurance costs and claims; the Insurance (Amendment) Act 2018 to enhance the insurance compensation fund framework to protect third-party motor claimants in the event of an insurance firm failure; the Judicial Council Act 2019, which provides for a Judicial Council setting new personal injury guidelines in place of the current book of quantum; and the Personal Injuries Assessment Board (Amendment) Act 2019 to enhance the PIAB and provide for amendments to the Civil Liability and Courts Act 2004 to make it easier for businesses to challenge cases where fraud or exaggeration is suspected. In addition, the Consumer Insurance Contracts Act 2019 was introduced with the assistance of the Government and Deputies across all parties. I remind Deputy Doherty that a number of substantial amendments were introduced by the Government to make that particular legislation workable and that remaining provisions will be commenced in September. All of these legislative measures, I contend, represent a solid record of legislative action in this critically important sector.

I assure the House that there has been substantial engagement with insurers in recent months. The Tánaiste and a range of Ministers from all Government parties were actively involved in the matter. The key stakeholders have been met and the Minister of State, Deputy Fleming, has recently concluded a series of engagements with the main firms. In these, he raised the need for the industry to respond to both the Government's ongoing reforms, in particular the new guidelines, and the Covid-19 pandemic by lowering premiums and continuing to offer forbearance measures. These were undertaken in a positive manner, with many insurers indicating they intended to reduce premiums in response to the new guidelines. This was confirmed to Oireachtas Members as recently as last week. Further ministerial meetings will take place later this year to review progress in that regard.

In conclusion, the amendment seeking to have the Bill read a Second Time in nine months is the correct course of action. We should not lose sight of the fact the Government has developed a comprehensive, whole-of-government action plan for insurance reform that addresses insurance issues in a structured, targeted manner, and we are holding the insurance industry to account in regard to passing on savings arising from reforms delivered to date. In addition, we will examine whether existing tools such as the national claims information database can be used to do this more effectively. This will feed into work under way within the Department of Finance on considering a number of potential legislative measures in regard to consumer matters, including issues that were discussed this evening. Accordingly, we are not supporting the moving of this Bill and, instead, we seek that the matter be considered again by the House in nine months after important work has been done.

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