Ruairi Ó Murchú (Louth, Sinn Fein)
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296. To ask the Minister for Finance the current and future plans to tackle the crisis in terms of public liability insurance; the expected timelines in this regard; and if he will make a statement on the matter. [40953/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As committed to in the 2020 Programme for Government, Government is prioritising reform of the insurance sector with particular emphasis on motor, public liability, and employer liability insurance. The whole-of-Government approach being taken through the Action Plan for Insurance Reformtherefore sets out 66 actions which aim to improve both the cost and availability of this key financial service, particularly for businesses. As the Deputy may be aware, the Cabinet Committee Insurance Reform Sub-Group earlier this month published the first six-monthly Implementation Report of the Action Plan. This shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed. The Sub-Group’s focus now is on implementing the outstanding actions on time.

One of the key achievements in the first half of this year under the Action Planwas the implementation of the Personal Injuries Guidelines, which represents a key achievement of this insurance reform agenda, and was realised several months ahead of schedule. The Guidelines significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Of note is that a number of common injuries will now move to the jurisdiction of the District rather than the Circuit Court, thus reducing associated legal fees. The Guidelines also provide guidance in relation to injuries previously not included in the Book of Quantum and will be used by both the Personal Injuries Assessment Board (PIAB) and the judiciary. Therefore, they should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using the PIAB to settle claims. This in turn should further reduce the costs of claims, particularly legal fees. I have previously set out my view that these costs, rather than the profit component, tend to represent a bigger factor in the cost of insurance premiums. As such, it is important that they are lowered.

As Minister for Finance, my expectation is that insurers will now commence reflecting savings from reduced award levels to customers, in line with past commitments, and I intend to hold them to account on this. Minister of State Fleming met with the CEOs of the main insurers operating in Ireland to set out the Government’s expectation in this regard. These engagements were positive, with insurers indicating that they will begin lowering premiums in response to the Guidelines. The Minister of State will meet with CEOs again later this year to review their ongoing response to this and other key reforms.

As the Deputy will also be aware, the Central Bank earlier this month published the first National Claims Information Database (NCID) report on employer liability, public liability and commercial property insurance. This is a rich source of data, which represents a baseline that will continue to be enhanced in the coming years, and enable us to analyse market developments. Ireland is virtually unique in having this level of information and transparency available to policy makers. Further development of the NCID is a key priority for my Department going forward, to allow Government to make informed and appropriate decisions when it comes to improving the public liability insurance market, as well as other forms of insurance for businesses. My officials are currently engaging with the Central Bank to consider what enhancements could be made, in particular so that the impact of the Personal Injury Guidelines can be seen in future motor, employer and public liability reports.

Finally, I would like to assure the Deputy that work remains ongoing across Government to deliver further elements of the Action Plan, including measures to reform the PIAB, reduce fraud, and make changes to the duty of care in order to strengthen waivers and notices. It is my hope that the implementation of these key actions in particular should further help to lower public liability insurance costs for businesses.

Ruairi Ó Murchú (Louth, Sinn Fein)
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297. To ask the Minister for Finance the engagements he has had with insurance underwriters to bring more into the market; and if he will make a statement on the matter. [40954/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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This Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. In this regard, the Action Plan for Insurance Reformsets out 66 actions across a number of policy areas. As the Deputy may be aware, the Government recently published the first Action Plan Implementation Report, which shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed.

One of the key achievements of the Government’s reform agenda is the new Office to Promote Competition in the Insurance Market, which is chaired by Minister of State Fleming. Since its establishment, the Office has held meetings with a wide range of stakeholders including insurance companies, representative bodies, civil society groups and state regulators on the issues surrounding competition. Minister Fleming met with CEOs of the major insurance providers in Ireland earlier in the year and will meet with them again in the autumn to discuss a variety of issues with them. I would like to add that we are already seeing indications that the insurance industry is beginning to respond positively to our reform agenda with the announcement recently by a specialist insurer that it will expand its footprint in Ireland. This is a welcome development, which may prompt other firms to expand their product offerings.

The Department is also working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. Officials from both are developing a customised proposal for potential market entrants and are identifying targets to engage intensively with. This will, in the first instance, seek out providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market where some customers are encountering difficulties.

The Deputy may also be aware that the Central Bank recently published the first National Claims Information Database (NCID) report on employers' liability (EL), public liability (PL) and commercial property insurance. It showed that while many businesses in Ireland are accessing affordable insurance, some industries are encountering difficulties. This report is a rich source of data which will further enhance the transparency of the sector. My officials are also engaging with the Central Bank to consider what enhancements could be made to further improve transparency in the next iteration of this report, which will prove to be useful in encouraging new entrants to the Irish insurance market.

Finally, I would like to take this opportunity to assure the Deputy that securing 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 my intention to work with my Government colleagues to ensure that implementation of the Action Plan can have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.