Peter Fitzpatrick (Louth, Independent) | Oireachtas source

Once again, I want to raise the issue of insurance, particularly the soaring cost of business insurance. It has been reported that insurance renewals have increased by 15% in the past year. In the hospitality sector, insurance has increased by an average of 10%. This is despite the fact this sector has been practically closed for the past 12 to 18 months. This is not on. The Alliance for Insurance Reform report published last week stated insurance costs had risen across the board by an average of 15%. This is despite the fact that new personal injuries guidelines have been introduced. These new measures have resulted in reductions in personal injury awards, which should have resulted in reductions in insurance premiums. Unfortunately, this is not happening and businesses deserve to know why their premiums continue to rise. The insurance industry needs to answer these questions.

Earlier this month, the Personal Injuries Assessment Board, PIAB, reported that average awards since the introduction of new guidelines have decreased by 40% compared to last year. Despite this 40% drop as well as a reduction of liability in personal injury claims over the past decade, the commencement of the perjury legislation and the opening of the Garda insurance fraud office, businesses are still facing insurance premiums that are rising at an annual rate. This is wrong and needs to be addressed. Why is the insurance industry not passing on these reductions to their customers? Only two weeks ago, the Tánaiste publicly stated he expected insurance premiums to fall as a result of greatly reduced personal injury claims. He also stated the Government would continue to work with the insurance sector to make sure premiums will eventually fall. What exactly is the Government doing to ensure this?

I have been contacted by many local businesses in Dundalk regarding their insurance costs. In some cases they have doubled compared to the previous year. This has the potential to put many businesses on the brink. I want to talk about one business in Dundalk that has contacted me. Air Bound Trampoline Park provides fun and fitness for children and adults. It is a great place for children and their friends to visit. It is also a wonderful place for parents of autistic children and other children with disabilities to bring their children for much-needed leisure activities. When the children were not in school, Air Bound was open seven days a week and when the schools went back to normal, it opened four days a week. It employs 16 staff, many of whom are students who use it to pay their way through college.

Almost two years ago, the park was closed because it could not get insurance. Luckily, someone came in and helped out. On 12 December, the park is facing the same challenge when it comes to insurance. At this point in time, no insurance underwriter will offer it insurance. It has no outstanding claims. It is being told the insurance company that deals specifically with activities and leisure parks is pulling out of Ireland due to the ever-increasing red tape being introduced by the Central Bank. If this is the case, the Government must act now. We cannot see businesses such as Air Bound Trampoline Park closed because they cannot get insurance.

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