Niall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

236. To ask the Minister for Finance his views regarding the very few insurers now willing to insure Irish hotel liability insurance; the reason there is no Irish insurer that will insure hotels for new business currently; the steps being taken to tackle the cost of business insurance from a regulatory viewpoint (details supplied); and if he will make a statement on the matter. [19377/17]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I 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. 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. Consequently, while I am aware of the difficulties faced by the hotel sector, I am not in a position to direct insurance companies to provide cover or to price at a particular level.

Nevertheless, it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the availability and 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 the following core areas are being 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 is building upon the previous work done in the motor phase in order to determine how it can be applied in the employer liability and public liability insurance claims areas particularly in relation to:

- 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 hotel sector. Indeed, as part of the current consultation process, there has already been a very informative engagement with the Irish Hotels Federation, as well as other organisations within the hospitality sector such as the Licensed Vintners Association and the Vintners’ Federation of Ireland.

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.