Michael Cahill (Kerry, Fianna Fail)

Despite the enormous profits being made by insurance companies in this country, premiums continue to rocket upwards. Given that insurance is not alone essential but, in instances like motor insurance, it is required by law, the Government should have stricter control of any proposed increases in premiums. We know that increased construction costs have a large effect on domestic house insurance but increases of 20% year-on-year appear to be over the top and unwarranted. Businesses can succeed or fail depending on how well costs are controlled, and insurance premiums are totally outside the control of business managers. Businesses need confidence in the ongoing costs that they will incur going forward so they know what they can invest back into their project.

Car insurance, thankfully, seems to be the one type that, in recent years, has become a little bit competitive. Drivers can shop around for a cheaper quote, young drivers being the exception.

They are hit the hardest of all. I have noticed that if you need to make a claim, your premium is increased for a number of subsequent years until you have reimbursed the insurance company fully. Insurance companies calling payouts or claims losses is inaccurate as they are reimbursed by the insured. This means the insurance company never loses.

Controls that exist need to be tightened up to ensure that house, car, health and business insurance in general are affordable to the public. Even if not legally required, it is desirable that insurance cover is availed of by as many people as possible to avoid heavy losses, not alone to business, but to private citizens as well. Your house and your car are usually the two largest investments for people today and loss of or damage to either can put a private citizen in deep debt very quickly or out of business. Can the Minister of State outline what controls of insurance premium price rises exist and if there are any plans already in train to tighten them up?

Deputy Healy Rae mentioned flooding. I come from an area close to Cromane where houses have been subject to tidal flooding. They too have a huge issue in obtaining housing insurance afterwards and I have known many more cases around my county.

I wish to take this opportunity to raise the position of horse and pony racing insurance. I have been contacted recently by people involved in horse and pony racing who believe their business is going to come to an end. They attract huge crowds every year and it is where the great jockeys - Paul Townend, Ruby Walsh and all the others - started out in life. Horse Racing Ireland, until two years ago, was giving them €80,000 towards the cost of insurance but that has now stopped. Any assistance the Minister could give to the horse and pony association would be extremely welcome. There are 26 meetings nationally, including the Dingle races which are very popular in the month of August in County Kerry, and indeed there are many more. That industry deserves our support.

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