Willie Penrose (Longford-Westmeath, Labour)
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76. To ask the Minister for Finance the steps he will take to accelerate the insurance reform programme in view of the significant damage that spiralling insurance costs are causing for community groups, voluntary organisations, charities and small businesses; the reason such perceived exorbitant premiums are being sought; and if he will make a statement on the matter. [7383/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am aware of the concerns raised by the Deputy in relation to the financial strain which the cost of insurance is placing on community groups, voluntary organisations, charities and small businesses.

However, the Deputy should note that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation and that 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 direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of policyholders.

The above said, however, it was recognised with the establishment of the Cost of Insurance Working Group (CIWG) that the environment within which insurers conduct their business can be better shaped, in order to make the Irish insurance market a more competitive one and also make it more attractive for new entrants. In this regard, 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 second phase of the CIWG, under the Chairmanship of the Minister of State for Financial Services and Insurance, Mr. Michael D’Arcy TD, culminated in the issuing of the Report on the Cost of Employer and Public Liability Insurance in January 2018. This report acknowledges that many of the difficulties being faced by business are also impacting upon by community, voluntary and charitable organisations. It makes 15 recommendations with 29 associated actions, detailed in an Action Plan with agreed timelines for implementation.

The most recent Progress Update was published last November and shows that 18 of the 19 actions points arising up to end of Q3 2018 have been completed.

It is envisaged that the next quarterly Progress Update will issue by the end of this month and I understand that the vast majority of the total of 26 action points which were due for completion during 2018 overall have been done. I am confident that any outstanding action points will be completed in the coming months, along with the three remaining action points with deadlines set for various quarters throughout 2019.

The actions implemented to date cut across a number of different areas and include:

- The publication of by An Garda Síochána of the “Guidelines for the Reporting of Suspected Fraudulent Insurance Claims by Insurance Entities to An Garda Síochána”

- The Law Reform Commission confirming that the subject of caps on damages for personal injuries litigation is included in its draft Fifth Programme of Law Reform

- Sections 8 & 14 of the Civil Liability and Courts Act 2004 have been amended to ensure defendants are appropriately notified of a claim having been submitted against their policy and to make it easier for businesses and insurers to challenge cases where fraud or exaggeration is suspected, respectively

- An Garda Síochána commencing the collection of statistics under the new “insurance fraud” category which has been added to the PULSE system

- The Courts Service confirming that they will publish a more detailed breakdown of awards in personal injury cases in its Annual Reports

Finally, I would like to assure the Deputy that the CIWG will continue to focus on implementing the recommendations of the Report on the Cost of Employer and Public Liability Insurance in parallel with implementing those from the Report on the Cost of Motor Insurance. I am hopeful that the cumulative effects of the completion of the two Reports’ recommendations will include increased stability in the pricing of insurance for businesses and voluntary and other organisations alike, and a more competitive insurance market.