Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

At the outset I would like to join with others in wishing Martin well in his retirement. His 22 years of service have provided an incredible record of helpfulness and professionalism. We all found him very good to deal with and always very supportive. I wish him good health and happiness in his retirement.

I welcome this legislation, which the Social Democrats are happy to support. The transposition of Articles 10a and 25a of the amended motor insurance directive will certainly strengthen protections for policyholders and enhance the existing legal framework. The introduction of a one-stop-shop model whereby the Motor Insurers Bureau of Ireland acts as the compensation body for Ireland should streamline the process for claimants. The move from a host-based system for insurers to a home-based one is also very welcome.

However, the Minister of State's claim last month that this Bill was further testament to the Minister's commitment to insurance reform was surely a bit of a stretch. The Bill came about because of an EU directive. It is not a Government-led initiative. In fact, we know that the EU had to begin infringement proceedings to get the Minister to act. The deadline for transposing the 2021 directive was 23 December 2023. To suggest it is part of the Government's insurance reform plan is just spin.

On the subject of those reforms, I will make a few points. While this Government's programme of insurance reform and regulation was welcome, it has not delivered for communities or businesses. Fine Gael prides itself on being the party of business but after 13 years in government, it has still not addressed the very heavy burden that insurance costs place on small businesses. In April, the Central Bank of Ireland published its national claims information database liability report for 2022.

It found that premiums for public, employer and commercial property liability cover increased by 8% in 2022 despite the total cost of settlements falling by 14% or €43 million since 2019. The best the then Minister of State with responsibility for insurance, Deputy Carroll MacNeill, could say in response was that she would raise it with the insurance industry. Frankly, that is not good enough. I urge the new Minister of State to take a much firmer stance with the sector. After all, insurance companies providing employers' liability and public liability cover recorded record profits of €176 million in 2022 after taking in nearly €1.3 billion in premiums.

Clearly, the Government's insurance reforms have not adequately addressed the high cost of insurance for communities or small businesses. On this Government's watch, play centres are closing down, expenses for sports clubs and community groups are escalating, tourism and activity-based businesses are really struggling to remain open, touring performers are skipping playing Ireland and costs for small businesses are being driven up. With the exception of those with vested interests, everyone loses under the current system. That is why a radically different approach is required. We should be looking at the different options in this regard. For example, we should be looking at other models such as co-operative or group insurance to promote more stable and affordable options for small businesses and for sports and community groups. The Government should also undertake a review of State-run insurers in other jurisdictions such as, for example, Canada, as a way of delivering affordability. It is clear that the motivation of private insurers is to maximise shareholder profits and that is not compatible with the long-term interests of our communities and our county more generally.

This Government may have delivered some worthwhile insurance reforms during its tenure but the power imbalance between insurers and policyholders is still far too heavily skewed. The customer should be at the centre of insurance policy-making, not the insurer. How much longer can the customer be expected to carry the burden of high premiums while insurers profit to the extent they have been. We need far more to be done to protect consumers and to put them at the heart of policy in this area.

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