Written answers

Tuesday, 27 March 2018

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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196. To ask the Minister for Finance the timeframe to implement measures to address the escalating costs of business insurance; and if he will make a statement on the matter. [14181/18]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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197. To ask the Minister for Finance when the cost of insurance working group will finalise a report; his plans to implement measures from the work of the group to deal with the escalating costs of business insurance; and if he will make a statement on the matter. [14182/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 196 and 197 together.

The second phase of the Cost of Insurance Working Group project culminated in the publication on January 25th of the Report on the Cost of Employer and Public Liability Insurance, following its approval by Government.  This new Report makes 15 recommendations with 29 associated actions to be carried out, detailed in an Action Plan contained in the Report with agreed timelines for implementation.

All 29 actions are scheduled to be implemented before the end of 2019, with 26 due for completion this year.  The following numbers of actions are due in each respective quarter:

- Q1 2018: 8 actions

- Q2 2018: 7 actions

- Q3 2018: 4 actions

- Q4 2018: 7 actions

- Q1 2019:  action

- Q2 2019: 1 action

- Q3 2019: N/A

- Q4 2019: 1 action

The recommendations, covering three main themes, include actions to:

- Increase Transparency:enhance levels of transparency and improve data sharing and collection processes,

- Review the level of damages in personal injury cases:request that the Law Reform Commission undertake a detailed analysis of the possibility of developing constitutionally sound legislation to delimit or cap the amounts of damages which a court may award in respect of some or all categories of personal injuries, and

- Improve the personal injuries litigation framework:through a number of measures, including:

1. ensuring potential defendants are notified in sufficient time that an incident has occurred in relation to which a claim is going to be made against their policy;

2. tackling fraudulent and exaggerated claims; and

3. ensuring suitable training and information supports are available to the Judiciary to assist in the fair and consistent assessment and awarding of damages in personal injury cases.

The Working Group will focus during 2018 on carrying out the recommendations of the Report on the Cost of Employer and Public Liability Insurance in parallel with the continuing implementation of the 2017 Report on the Cost of Motor Insurance.  I am hopeful that the cumulative effect of the completion of the two reports’ recommendations will be increased stability in the pricing of insurance for businesses and improved availability of liability insurance for all types of bodies.

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