Brendan Smith (Cavan-Monaghan, Fianna Fail)
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217. To ask the Minister for Finance if his attention has been drawn to the serious concerns of the hospitality sector in relation to the increasing costs of insurance; the measures he proposes to implement to reduce such insurance premiums; and if he will make a statement on the matter. [13514/17]

Michael Noonan (Limerick City, Fine Gael)
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Concerns relating to increasing costs of insurance in the hospitality sector have been brought to my attention. However, neither I, nor the Central Bank can directly influence insurance pricing 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.  This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. It should be noted that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. 

However, it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance. Accordingly, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair.  This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short, medium and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The initial focus of the Working Group was the issue of rising motor insurance premiums and the Report on the Cost of Motor Insurance was published in January 2017.

The Working Group is now in its second phase which is concentrating on the Employer Liability and Public Liability insurance sectors. The terms of reference for this work have been agreed and it is proposed that the following core areas will be considered:

- Overview of the Employer Liability and Public Liability insurance sectors

- Impact of the cost of insurance on the competitiveness of particular business sectors

- Impact of health and safety issues on the cost of insurance

- Other market issues

In addition, the Working Group will build upon previous work done as it relates to Employer Liability and Public Liability insurance claims in examining:

- Personal Injury data and information

- Effects of legal costs and litigation processes on insurance costs

- Current claims compensation arrangements and cost of claims

- Impact of unlawful activity on insurance sector

The Working Group is continuing to meet on a regular basis to examine issues related to Employer Liability and Public Liability insurance, including those pertinent to the hospitality sector. Indeed, as part of the current consultation process, there has already been a very informative engagement with relevant organisations within the hospitality sector such as the Licensed Vintners Association and the Vintners' Federation of Ireland. I am informed that the Working Group will also hear from the Irish Hotels Federation. 

It is envisaged that the final results of the second phase will take the form of an addendum to the existing Report. As with the first phase, the aim is for all relevant bodies and stakeholders to work together in order to deliver fairer premiums for businesses without unnecessary delay.