Louise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source

I welcome the opportunity to contribute. Recently, the Alliance for Insurance Reform appeared before the Joint Committee on Enterprise, Trade, and Employment. The picture it painted of the insurance market for small businesses was bleak and stark. The alliance represents small businesses, community groups and so on. The Minister of State will be familiar with the type of thing I am talking about from his own community. The alliance told us that, despite the new personal injuries guidelines entering into force in 2021, liability premiums had continued to increase by 16% in its members' experience. We were grateful for their evidence that day. The alliance carried out a survey of members, with 42% of respondents saying that insurance costs were threatening the future of their organisations. This figure is up from 26% in 2018. The time between surveys was not that long, but the increase was stark. To put a bit of shape on these statistics, when the alliance says that the costs are threatening the future of its members' organisations, it is a direct message that is heard by the workers employed by those organisations, who hear it as a threat to jobs. This is destabilising for workers, and planning becomes difficult if you believe you are on such uncertain terms.

While there has been movement on insurance reform since 2018, those who need to be supported and protected the most say that they are not feeling any benefit. Of the members who responded to the survey, the Alliance for Insurance Reform found that 90% believed that the Government was not doing enough to address insurance costs. These are the people who are on the business end of what the Government trumpets as reforms. Reform has to mean something to businesses and business owners. It has to mean decreasing insurance costs.

The new personal injury guidelines came into effect in April 2021, significantly reducing the level of damages for personal injuries. Data from PIAB show that the average value of awards fell by 42% in 2021 since the introduction of the new guidelines. That is welcome but as pointed out by my colleague, Deputy Doherty, this reduction in awards provides a significant saving for the insurance industry. The purpose of the guidelines, however, was to reduce insurance premiums, not to provide a windfall to the insurance industry. The Minister of State will be aware that the insurance industry has done relatively well recently. If it is not passing the reduction on, it will do even better, but that is not the reduction's purpose. It has to be passed on.

It is important that we see effective insurance reform, and the speed of reform should be at the forefront of the work carried out by the Government. That reform is happening is not enough on its own. It has to happen in a timely manner. It is also important that we see a multidepartmental approach to tackling issues relating to the insurance sector, and I hope that the Departments of Finance and Enterprise, Trade and Employment can work together efficiently and effectively to deliver the reforms that are necessary to secure the future of SMEs, community groups and voluntary organisations.

At a meeting of the Joint Committee on Enterprise, Trade and Employment some weeks ago, we discussed the general scheme of the personal injuries resolution board Bill. The Bill's policy objective is to amend the legislation to facilitate an increase in the number of personal injury claims that may be resolved through the board. Tackling issues within the insurance sector across the board and in tandem is what individuals and businesses want and what is needed. We need a sea change in the insurance market, not tinkering around the edges. The public and businesses are crying out for effective, efficient and expedient insurance reform from the Government, and it is up to the Ministers for Finance and Enterprise, Trade, and Employment to ensure that it is delivered.

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