Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

1065. To ask the Minister for Children, Equality, Disability, Integration and Youth if his Department will provide additional financial assistance to childcare providers who have experienced significant increases in insurance bills in 2021; and if he will make a statement on the matter. [14055/21]

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

I understand that there has been some increase in brokerage fees for the majority of childcare providers, but that there has not been a general or significant increase in premiums for childcare providers. 

 Early Learning and Care (ELC) and School Aged Childcare (SAC) services are required to have insurance as part of their registration with Tulsa, the independent regulator of the sector.  My Department provides funding to childcare providers under a number of programmes to provide fully or partly subsidised childcare services to families.  Childcare providers are private businesses and my Department does not provide funding for specific operational costs such as insurance.

With regard to the cost of insurance, it is important to note that neither the Government, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.

Notwithstanding this, insurance reform is a priority for this Government. The Action Plan for Insurance Reform, which was launched on 8 December 2020, contains a range of deliverables in a number of Government Department policy areas. It is intended that the cumulative effect of the implementation of the actions will be to improve the insurance environment, in particular for businesses. I am a member of the Sub-Group for Insurance Reform, chaired by An Tánaiste, which has been set up within the Cabinet Committee for Economic Recovery and Investment to implement these reforms, and will publish progress reports every six months.

Seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is the Government’s intention to ensure that the implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses and voluntary groups, including childcare providers.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

1066. To ask the Minister for Children, Equality, Disability, Integration and Youth if his attention has been drawn to the fact that many childcare providers have received insurance bills substantially higher in 2021 than previously; the actions he plans to take in response to this; and if he will make a statement on the matter. [14056/21]

Roderic O'Gorman (Dublin West, Green Party)
Link to this: Individually | In context | Oireachtas source

I understand that there has been some increase in brokerage fees for the majority of childcare providers, but that there has not been a general increase in premiums for childcare providers.

It is important to note that neither the Government, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.

Notwithstanding this, insurance reform is a priority for this Government. The Action Plan for Insurance Reform, which was launched on 8 December 2020, contains a range of deliverables in a number of Government Department policy areas. It is intended that the cumulative effect of the implementation of the actions will be to improve the insurance environment, in particular for businesses. I am a member of the Sub-Group for Insurance Reform, chaired by An Tánaiste, which has been set up within the Cabinet Committee for Economic Recovery and Investment to implement these reforms, and will publish progress reports every six months. The Plan is ambitious, with 95% of actions due to be completed by the end of 2021. Work is already underway in relation to certain areas, including:

- increasing market transparency through the National Claims Information Database (NCID), including for employer and public liability insurance;

- making proposals on increasing competition in the Irish insurance market;

- working to remove dual pricing from the insurance market, following the publication of the Central Bank’s final report on the matter;

- reviewing the duty of care to strengthen waivers and notices to increase protections for consumers, businesses, sporting clubs and community groups; and

- looking at how to further enhance the role of the Personal Injuries Assessment Board (PIAB).

As the Deputy may be aware, the recent publication of the Personal Injuries Guidelines by the Judicial Council also represents another key element of the Action Plan. The Guidelines, which will be used by both PIAB and the judiciary, significantly reduce award levels for many categories of common injuries, and should provide greater certainty to insurers and claimants. It is therefore expected that, in time, the new Guidelines will also help to reduce the overall cost of insurance and will see many claims settled more quickly and with lower associated legal costs.

Seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is the Government’s intention to ensure that the implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses and voluntary groups, including childcare providers.