Brendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

59. To ask the Minister for Finance his views on resolving the cost of insurance crisis to aid SMEs to recover (details supplied); and if he will make a statement on the matter. [29022/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I can assure the Deputy that insurance reform is a key policy priority for this Government and this is reflected in the Programme for Government (PfG). There are a number of areas that require reform and this is why making progress on these problems will require a ‘whole-of-Government’ approach as recognised in the PfG. This lays out specific commitments that are aimed at addressing consumer and business concerns on the cost of insurance. These include increasing transparency; reviewing duty of care legislation; looking at how to further enhance the role of the Personal Injuries Assessment Board; minimising the scope for questionable claims; and increasing competition in the market.

Implementation of this agenda will be a key issue for myself and Minister of State Fleming as well other members of Cabinet, especially those that will be working on this through the recently established Cabinet Committee on Economic Recovery and Investment’s sub-Group on Insurance Reform. This sub-Group held its inaugural meeting on 1 October and identified a number of key deliverables to be progressed before the end of 2020. The Sub-group is chaired by the Tánaiste, and also includes myself, Ministers McGrath, McEntee, and O’Gorman, together with Ministers of State Troy and Fleming as standing members. I believe that this sub-Group provides the best opportunity to address the cost and availability of insurance through a cross-Governmental response. This will build and expand upon the previous commendable work done by the Cost of Insurance Working Group.

As you will be aware, a number of important reforms have already taken place, and the impact of these is reflected in the recent CSO data which indicate that the cost of private motor insurance is now a third cheaper than at its peak in July 2016. The sub-Group will focus on those reforms needed to ensure that similar reductions in cost can be extended to other areas of insurance, most notably, Employer and Public Liability insurance, which are among the main concerns for businesses.

Undoubtedly, in that regard, a necessary step is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council last December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Judicial Council shortly. While the adoption of those Guidelines will be a matter for the Judicial Council, it is desirable that the Guidelines could play a role in the lowering of award levels and also could lead to a more consistent application of making awards in courts. Insurance Ireland has indicated that if award levels come down so will premiums charged by its members. I believe that this is a very important statement and this Government intends holding the insurance industry to this commitment.

In conclusion, the Deputy can rest assured that in addition to all the other measures that Government has taken over recent months to support SMEs, the issue of insurance reform is a key priority issue for this Government. In that context we will continue to seek to ensure that progress is made in this policy area.