Brian Stanley (Laois, Independent)

I welcome the proposals set out in this motion. I must say there have been many promises regarding improvements to the insurance industry but these have not happened for the customers. The costs of motor, business and home insurance are up. Insurance costs for community and sports groups are up sky high. Health insurance is out of reach and causing significant problems, especially for people over the age of 60. The cost of motor insurance is increasing at a rate double the EU average. There have been double-digit increases in a single year. In the first six months of 2024, the cost went up by 9%. That was 9% in just a six-month period. Small businesses tell me the whole time they are paying astronomical insurance costs. The Minister of State will know that public liability insurance for shopkeepers and other people who must have it is costing a fortune.

Areas where there is flooding, such as Mountmellick, but where flood relief schemes are not yet in place, are simply being refused insurance coverage in a lot of cases. As the previous speaker said, where flood relief schemes have been put in, that is not being recognised by the insurance companies. Voluntary groups and sports clubs are under enormous pressure. It is a huge undertaking for volunteer organisations to have to come up with the money for these costs every year on top of all the other overheads, such as payments to Irish Water, electricity costs and everything else.

The worst aspect, though, is the cost of private health insurance. This is especially the case for those aged 60 and over. They have no choice in the current circumstances, because of the gaps and weaknesses in our public health system, but to take out private insurance. Some of these people are just on a State pension. I have come across people who are just on the State pension and are paying €2,000 or more a year for their basic cover health insurance. This is over €40 a week out of their pension of €260 or €270 a week. It is substantial. Some of these people paid 60% tax rates back in the 1980s. Health insurance companies are introducing not one and not two increases in the cost of insurance in a year, but three increases. There could be three increases in the year. The cost rise is absolutely galloping ahead, and all of this is happening during a cost-of-living crisis. The worst part of this situation is being carried by ordinary workers and families, especially those on low and middle incomes. They are entitled to very little but they are paying for everything.

When we joined the EU Single Market, we were told there would be a lot of reforms and we would benefit from all of it. It does not, though, seem to have worked out in the insurance industry. We are completely out of sync with the rest of Europe in terms of our motor, business and other insurance costs. Reforms have happened, and they were welcomed. I certainly welcomed them at the time. More are required, though, because business as usual is not good enough any longer. It is not an option. Insurance companies are highly profitable because, on the one hand, the cost of claims has reduced substantially, while, on the other hand, the cost of insurance has gone up.

As I said, it cannot be business as usual. The powers of the competition authority need to be strengthened. Legal fees need to be reduced. We have been promised a number of times that this would happen. It has not happened. The Government must ensure there is transparent oversight of insurance companies not passing on savings. We also need proper oversight of the personal injury guidelines. We must ensure there is proper monitoring in that area. Action is now required from this Fianna Fáil and Fine Gael Government because we cannot continue with the high costs we have on small businesses, on householders and on motorists.

Many people commute every day from County Laois, where I live. More than 12,000 people commute out of the county every day. On top of that, there are people in the county living in outlying areas such as Rathdowney, Borris-in-Ossory, Ballaghmore and Emo who have to travel into work by car, not having any other option. They are paying astronomical prices. Some people have been caught in the last year or two without insurance. These are people using the car for work. I have come across people who have just not been able to afford the cost of insurance, so they have a choice between driving the car to work without insurance and taking the chance of eventually getting caught, or giving up the job. That is not a good place to be. We must reduce the cost for people who have a good track record of safety on the roads. Their costs should be going down in a meaningful way every year, but they are not.

Loyal customers should not be taken for granted as well.

We need proper reforms. We need the measures I have outlined. Legal fees need to be reduced as well. The Government needs to ensure these companies are not doing what they like here in Ireland.

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