Written answers

Tuesday, 16 November 2021

Department of Finance

Insurance Industry

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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219. To ask the Minister for Finance if his attention has been drawn to the exorbitant rise in insurance costs faced by the horse and pony racing sectors which is putting their existence in peril; and if he will make a statement on the matter. [55989/21]

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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220. To ask the Minister for Finance the measures he is taking to combat the exorbitant rise in insurance costs faced by organisations such as the horse and pony racing sectors which is putting their existence in peril; and if he will make a statement on the matter. [55990/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 219 and 220 together.

At the outset, I would clarify that neither I, nor the Central Bank of Ireland, can influence the provision nor pricing of insurance products, nor do we have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU Solvency II Directive insurance framework.

Having said that, this Government is acutely aware of the concerns felt by many sectors, including the equestrian ones highlighted by the Deputy, regarding the cost and availability of insurance. It has therefore prioritised the implementation of the Action Plan for Insurance Reform. As the Deputy may be aware, the first Action Plan Implementation Report, which was published in July, shows that significant progress has been made, with 34 of the 66 actions contained therein now completed.

One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines some six months ahead of schedule. Early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development; it is my hope that this trend will continue and result in lower insurance costs. As the reform agenda progresses, we will continue to hold the industry to account on its commitments to pass on savings from the Guidelines, and other elements of the reforms, to customers. Minister of State Fleming, in his ongoing engagement with the sector, has emphasised the need for insurance providers to reduce premiums and increase their risk appetite to provide cover in new areas. He will be meeting directly with the insurance sector representatives, including the CEOs of the main firms operating here, this month to reiterate this message.

A further element of the Action Plan with particular relevance to these types of activities involves reviewing the Duty of Care. The Minister for Justice, who is leading on this action, has noted to Government the intention to bring forward legislative proposals to reform the law in this area. I understand from Department of Justice officials that these proposals are at an advanced stage and it is my hope that these will significantly assist the sporting and outdoor activity sector.

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 the implementation of the Action Plan can continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country, including in the equestrian sector as well as other leisure and outdoor pursuits.

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