Michael Moynihan (Cork North West, Fianna Fail)
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I thank the Leas-Cheann Comhairle for allowing me to raise on the Topical Issue debate the issue of insurance reform and the impact of the cost of insurance to businesses. I work closely with the Business Insurance Reform Group, which is led by Michael Horgan in Newmarket and Declan Ryan from Kenmare in County Kerry. They have put in a great deal of work along with other groups to bring about change to the insurance industry. Business is severely affected by the spiralling cost of insurance. This year more than any other year, people have contacted me who are genuinely concerned about the cost of insurance and have indicated that for the first time ever, they are facing the possibility of having to close their doors in the new year because they cannot sustain the level of insurance premiums being sought to cover their businesses. That is because underwriters are leaving the market and there is a lack of transparency.

I remind the Minister of State that the European Union raided and examined insurance companies some months ago to determine if a cartel was operating within the industry.

At the time, there was much fanfare and co-ordination of reports stating that the Government was making a serious attempt to tackle the spiralling cost of insurance. Where has that gone? What has happened to that European investigation? To where has it drifted off?

Many motions on insurance reform have been moved in this Dáil, and the Minister of State and every other public representative in this House encounter this issue on a daily basis. A huge number of centres are closing, including many play centres, which made it very clear last summer that they would not be able to continue to sustain their businesses due to the spiralling cost of insurance. There was much talk of what insurance reform had done to reduce the cost of car premiums, but that is no longer the case because it is continuing to spiral out of control. Many voluntary organisations, community initiatives and organisations providing services to the State under section 39 have seen their insurance premiums escalate. The problems faced by St. Joseph's Foundation in Charleville, the insurance premium of which went from €140,000 to over €500,000, has been brought to the Minister of State's personal attention. That organisation provides services for the whole catchment area, including both my county and the Minister of State's.

What has happened with the European Commission's dawn raids for tackling insurance? What are the Government's real targets in this area? We have heard many contributions, both in the Dáil and elsewhere, about targets and initiatives tried by the Government. Does the Government accept that many businesses will be forced to close their doors in the early part of 2020 because of the lack of coverage for insurance? Many in the catering industry in particular are considering going without insurance, which is a very dangerous precedent. I ask the Minister of State to address those issues.

Patrick O'Donovan (Limerick County, Fine Gael)
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First, I apologise for the absence of the Minister of State, Deputy D'Arcy, who is responsible for this area. I am a neighbour of Deputy Michael Moynihan's and many of the issues to which he has referred are familiar to me. I know that this issue concerns him and he has raised it previously. I will ask the Minister of State, Deputy D'Arcy, to correspond with or meet the Deputy about it.

The Government is very conscious of the cost and availability of insurance for those in small and medium-sized businesses across the country. However, while the Minister for Finance is responsible for the development of the legal framework governing financial regulation, neither he nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature and are determined by insurance companies based on an assessment of the risks they are willing to accept. Another constraint the Government faces in addressing this issue is that it is not in a position to direct the courts as to the award levels that should be applied. Unfortunately, therefore, there is no policy or legislative silver bullet which would immediately decrease the cost of insurance. This has also been recognised by the Oireachtas Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach in its report on motor insurance.

In that context, the cost of insurance working group, CIWG, was established to try to improve the environment within which insurers conduct their business. It has produced two reports, one on motor insurance and another on employer and public liability insurance. While significant progress has been made in implementing its recommendations, including amendments to the Civil Liability and Courts Act 2004 and the Personal Injuries Assessment Board Act 2003, and the establishment of the national claims information database in the Central Bank of Ireland, it is clear that the single biggest existing challenge impacting businesses is the level of awards given for relatively minor injuries compared to other jurisdictions, which must be addressed. In this regard, the key recommendation arising from the CIWG reports was the establishment of the Personal Injuries Commission, PIC, and the publication of its two reports. The PIC conducted a benchmarking of award levels between Ireland and other jurisdictions for the first time, which has been very helpful in identifying the scale of the problem. This research showed that award levels for soft tissue injuries in Ireland are 4.4 times higher than in England and Wales. The PIC recommended that a judicial council be established which would compile guidelines for appropriate general damages for various types of personal injury. In carrying out this exercise, the PIC believes that the Judiciary will take account of the jurisprudence of the Court of Appeal, the result of its benchmarking exercise, etc. On foot of this recommendation, the Government, with the support of all parties in the Oireachtas, prioritised the passing of the Judicial Council Act 2019. This Act provides for the establishment of a personal injuries guidelines committee upon the formal establishment of the judicial council. This committee will be tasked with introducing new guidelines to replace the book of quantum.

While some provisions of the Judicial Council Act have been enacted though statutory order by the Minister for Justice and Equality in order to allow background preparations to take place, the judicial council itself has yet to be established. However, the Minister was pleased that the Chief Justice, Mr. Justice Frank Clarke announced at the recent Insurance Ireland fraud conference that he has selected the personal injuries guidelines committee designate and that this committee will meet shortly to commence work on an informal basis. He also noted the balanced composition of the committee, which reflects all court levels. He believes this demonstrates that the Judiciary is giving this matter the priority it deserves. The Government also notes the interim Insurance Ireland CEO, Mr. Gerry Hassett's statement at the same conference, which noted that if award levels come down, premiums will as well. Both the Minister for Finance, Deputy Donohoe, and the Minister of State, Deputy D'Arcy, consider this a very reassuring commitment, to which they intend to hold the insurance industry. I also note that the insurance reform agenda continues to be a major priority for the Government and we believe a recalibration of award levels will go a significant way towards addressing the current affordability and availability of insurance impacting businesses.

I will ask the Minister to revert to the Deputy directly on the European investigation to which the Deputy referred.

Michael Moynihan (Cork North West, Fianna Fail)
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I was going to note that the Minister of State's reply did not address the issue of the European Commission's investigation. We need to know what has happened with that investigation, where it is at and when its results will be published on the public record.

The Minister of State spoke of the benchmarking of awards and the percentage of difference involved. He also referred to the book of quantum. As I understand it, a legislative framework is in place to ensure the amendment or redrawing of, or a new book of quantum. When, in the name of God, can we put that out there? Businesses are grinding to a halt because of insurance. The issue of insurance has come up repeatedly over the last while, more than any other. We often talk of premiums and claims, but it also came out through the Houses of the Oireachtas this year that insurance companies are making massive profits. I have met with many high street businesses attempting to keep their doors open and time and again they mention the crippling cost of insurance. The Personal Injuries Assessment Board was established a number of years ago. However, the legal profession seems to have bypassed it as it is no longer the panacea it was 15 or 20 years ago. Young people are paying through the nose for car insurance. When will the book of quantum be replaced? What are the Minister of State's opinions on the massive profits being made by insurance companies on the back of consumers, small business owners, motorists and householders? I ask him to make every effort to provide me with an update on what has happened with the European Commission's dawn raid.

Patrick O'Donovan (Limerick County, Fine Gael)
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The Topical Issue the Deputy submitted was fairly broad, and therefore the response is also broad and does not address the Deputy's specific questions. I will provide him with answers on the timeframe for the replacement of the book of quantum, the current status of the European Commission of investigation, and the dawn raid issue.

I do not disagree with what the Deputy is saying about this matter. Some of my family members are self-employed business people. This is a constituency issue which confronts every Member of this House and has been well documented. The Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach did a good job in shining a light on the insurance industry, as did some Deputies. Mr. Justice Frank Clarke's comments also point to where he believes this needs to go next.

The industry needs to take account of the comments of Oireachtas Members as well as the provisions of the Judicial Council Act enacted by the Government in co-operation with the main Opposition party. It must accept that the train is pulling into the station. The Deputy is correct regarding the level of profits being made. In my initial response, I outlined that the Minister, Deputy Donohoe, and the Minister of State, Deputy D'Arcy, are keeping open minds on the issue and are remaining vigilant. All Deputies accept that there is no silver bullet, as noted by the Committee on Finance, Public Expenditure and Reform, and Taoiseach in its report on the motor industry.

This is a major issue for many people, including returning emigrants. Many emigrants are returning from Australia or New Zealand to the Deputy's area of north Cork, to villages such as Kishkeam and Milford and Newtownshandrum. I too come from that part of the world. These issues must be resolved. The Minister and the Minister of State have given a commitment in that regard. I do not have direct responsibility for the issue. I will ask the Minister of State, Deputy D'Arcy, to liaise directly with the Deputy on the matters he has raised.