Michael Lowry (Tipperary, Independent) | Oireachtas source

The rising cost of insurance for all sectors is a major concern. While it is understood that the cost of premiums is related to the level of risk, there seems to be a sweeping view taken when calculating that risk. Practicalities determine there is seldom, if ever, an individual assessment of risk carried out, which results in some businesses being penalised for the failings of others.

The Alliance for Insurance Reform recently made a presentation to Department of Finance, which outlined that as many as 35 sectors are either struggling to get insurance or cannot obtain it at all. Those who have managed to get insurance cover have done so at a high cost and are left with a limited number of insurers who will engage with them. Those who fail to get a quote for insurance are left with no alternative but to cease their operations and abandon their plans. The denial of access to insurance cover is an immediate threat. We are in danger of losing thousands of small businesses and voluntary organisations, including adventure centres for children, caravan and camping parks, bike hire shops, equestrian sports, home care providers, festivals and events. For example, a popular, long-established attraction, Aqua Splash, Dromineer, County Tipperary, reopened in May when restrictions were eased. In exhaustive efforts to renew their insurance, it contacted numerous insurers in Ireland and the UK and not one would insure the business. Unfortunately, it is not alone in this dilemma. It appears anything to do with water sports or child play centres has become a taboo for insurance companies. This prevailing attitude impacts on a wide range of activities and services.

The Minister of State, Deputy Fleming, has established an office for insurance competition to encourage greater competition in the insurance sector. It is up and running since last December. There appears to be little progress. We have no reports of insurers contacted or new deals done. There are no announcements of new underwriters setting up in Ireland to take advantage of reforms that have happened and are due to happen. There is no sign of the expected new entrants to the insurance market. Where are the specialists in underwriting areas such as child-oriented enterprises, hospitality and tourism, leisure and the creative and sports sectors? The number of sectors that cannot get cover gives an indication of the scale and urgency of the supply issue. The market will take time to respond to reforms. In the interim, the Government must intervene with a sense of urgency on behalf of the sectors I have identified.

See this speech in context