Thomas Pringle (Donegal, Independent)
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148. To ask the Minister for Finance if his attention has been drawn to the issue of rising insurance costs incurred by marts, particularly in regard to a case (details supplied) which has experienced almost a twofold increase in insurance costs since 2015; if his Department has a policy in relation to monitoring insurance costs in this sector; if charges are calculated by comparing the turnover of marts across the country regardless of whether they open longer and generate more turnover than smaller marts; and if he will make a statement on the matter. [25548/17]

Michael Noonan (Limerick City, Fine Gael)
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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, I am not in a position to review individual cases nor to direct insurance companies as to the pricing level or terms or conditions that they should apply in particular cases. 

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.

In parallel with implementing the motor insurance recommendations, the Working Group in its second phase is examining the Employer Liability and Public Liability Insurance sectors.  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 also considering the impact of the cost of insurance on the competitiveness of particular business sectors, the impact of health and safety issues on the cost of insurance and other market issues. 

The Working Group is continuing to meet on a regular basis to examine issues related to Employer Liability and Public Liability insurance.  The Working Group has held extensive consultations with a range of stakeholders including the Hotels Federation of Ireland, IBEC, ISME, the Vintners’ Federation of Ireland (VFI), the Licensed Vintners’ Association (LVA), the Retail Grocery Dairy & Allied Trades Association (RGDATA), Chambers Ireland and the Health and Safety Authority, the Construction Industry Federation (CIF) and the Law Society of Ireland.  A submission has also been received from the Irish Farmers’ Association (IFA).  I would invite further submissions from interested parties to insurance@finance.gov.ie.

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. 

As it is likely that public liability and employer liability risks are a factor in the rising cost of insurance for marts, any recommendations emerging from this review should be of relevance to the mart sector.