Marie Sherlock (Labour) | Oireachtas source

The Labour Party supports the Bill. However, when I read through the legislation I think there are more questions than answers with regard to how the Government is proposing to deal with the myriad insurance issues in the country at the moment. Sections 3, 4 and 6, which form the bulk of the Bill, are effectively about data collection. There seems to be a hope that data collection will shine a light and bring transparency into some of the insurance companies' practices. We cannot depend on hope. We have to ensure there is regulation in place.

The main impetus for the Bill was the enormous outcry that insurance companies were profiting from the State payouts to firms by deducting the benefit that a company got in the ensuing insurance settlement. At the time last year, we heard very strong commitments from Government that it would act. Really what we are seeing in the legislation today is data collection as opposed to any outright action.

What is most galling for me is that the Government could have acted. I listened to Senator Casey who spoke really passionately about how insurance companies have acted and should act now in terms of paying back the benefit they have accrued from withholding the State benefit. Those same insurers in personal injury cases have to pay the State benefit back to the State. That is already in legislation. The Government knew about this in 2020 but decided not to put in place any conditionality or protection of the State's interest when it was setting up these State benefits to companies. It could have acted as it has already in respect of personal injury, yet it cast a blind eye. It was to be expected that insurance companies would have acted like this and deducted the State payout to the businesses when making insurance settlements.

Section 6 is the response to the appalling price walking and customer loyalty practices. It is usually the less savvy and less able customers who are less equipped to switch around and they are being penalised for their loyalty. The changes on 1 July are welcome but we really have to hear from the Minister today that he is going to monitor and act quickly if we do not see change in respect of premiums for those customers who do not switch. The precedent set down and what we are seeing at the moment with regard to the judicial council guidelines experience would not give us massive hope. The Minister of State cited figures in his own speech regarding where premiums have gone. We have not seen the fall in premiums that insurance companies promised when they were looking for these judicial council guidelines. I think insurance companies need to be pushed to a much greater extent by Government to make good on those commitments.

There is a massive issue with insurance coverage in this country and gaping holes in some sectors, particularly in the community sector, water sports, community arts festivals and other businesses and activities. I understand we are a small country and do not have the luxury of multiple insurance companies. As a small country, then, we have to look at how we correct the market failure. I know a number of small organisations making tiny profits, if any profit at all, that have had to shut down because they could not get a decent premium for their business. That was even looking to the UK because there was simply no insurance company here. It is one thing to say we are a small country and have to accept the insurance landscape as we have it. It is a very different thing for the Government to say it is going to do something about it. We have not heard that comprehensive response from Government but we need to hear it. The Labour Party and other parties, including Government parties I am sure, have been putting forward proposals as to how we can resolve some of those insurance gaps.We know there are proposals with regard to local authorities, and with regard to the State putting in place its own insurance company for community events. We need to see comprehensive action from the Minister of State on this. It is not good enough to put our hands up in the air and say we are a small country and we cannot do any more.