Neale Richmond (Dublin Rathdown, Fine Gael)
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189. To ask the Minister for Finance if his attention has been drawn to insurance companies declining employer’s insurance to disabled employers who manage their own support services in order to live independently in the community; if he has engaged with insurance companies on this issue; and if he will make a statement on the matter. [41968/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I understand that the issue referred to relates to insurance for companies which are set up with the support of Áiseanna Tacaíochta. This in turn facilitates direct payments to its disabled members to enable them manage their own support services.  I am aware of the difficulties being experienced by this organisation and its members regarding the increased cost of insurance cover and share concerns regarding such issues as cost and supply of insurance. However, as the Deputy will appreciate, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, nor do we have the power to direct insurance companies to provide cover to specific individuals. This position is reinforced by the EU Solvency II Directive insurance framework.

Having said that, since becoming aware of this issue, my officials have engaged with the industry representative body Insurance Ireland.  It has acknowledged that some insurers have withdrawn from parts of the liability insurance sector in recent years, and also noted the increase in average claims costs during this time, pointing to data from the recent report of the National Claims Information Database.  According to Insurance Ireland, increases in claims costs were due to volatility in the personal injuries claims environment.

In this regard, I believe that the new Personal Injuries Guidelines should provide much greater certainty regarding award levels, in addition to reducing awards for many common injuries, and also leading to lower legal fees by encouraging greater use of the Personal Injuries Assessment Board to settle claims. This should have a stabilising impact in relation to the issues currently being experienced by these organisations.  Indeed, in meetings with the main insurance companies in the Irish market, Minister of State Fleming has stated the Government’s expectation that insurers should now increase their risk appetite to extend cover to new market segments or areas they may have withdrawn from in recent years, in light of these savings.  I understand that he will be meeting with insurers again in the coming months to review their response to the Guidelines and other insurance reforms.

Furthermore, I also hope that the improved claims environment resulting from the implementation of the Guidelines will help to attract new entrants into the Irish market, or encourage providers who previously exited this market to return. Separately, I understand that the new Office to Promote Competition in the Insurance Market is working with IDA Ireland to develop a customised proposition for potential new market entrants, and to identify a shortlist of specific target companies.

These and further important actions, such as reviewing the duty of care, are being prioritised under the Action Plan for Insurance Reform. The implementation of the Government's broad package of reforms should assist in the development of a more sustainable and competitive market by deepening and widening the supply of insurance here, thereby improving both the cost and availability of cover for all groups, particularly those that deliver such valuable services as the organisation in question.