Claire Kerrane (Roscommon-Galway, Sinn Fein)
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204. To ask the Minister for Finance if his attention has been drawn to difficulties being experienced by the equine industry when it comes to insurance; the action he has taken to protect jobs in the sector and to ensure that racing events can get insurance cover in order to go ahead; if he has engaged with the sector; and if he will make a statement on the matter. [58907/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, it is important to note that neither I nor the Central Bank of Ireland have any influence over the pricing or provision of insurance products, as this is a purely commercial matter. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).

Having said that, the Government is acutely aware of the concerns felt by many sectors, including the 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 costs for businesses. As the insurance 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 recent engagement with the sector, re-emphasised the need for insurance providers to reduce premiums and increase their risk appetite to provide cover in new areas. It is my understanding that some providers have noted that they are considering expanding their footprint in the insurance market, including potentially in high-risk activity sectors. I will continue to monitor this situation.

Another key 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. My officials have been informed by colleagues in the Department of Justice that these proposals are at an advanced stage.

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 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 for the equine industry.

Brendan Griffin (Kerry, Fine Gael)
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206. To ask the Minister for Finance if his Department will encourage Irish public bodies to provide insurance for community groups given that there are only two insurers left in this market; and if he will make a statement on the matter. [59078/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I note that the company referred to by the Deputy is an independent entity which is subject to the same rules as all other insurers in the Irish market, including the Solvency II Directive.

While I share the Deputy’s concerns and understand the issues facing many community groups across the country regarding the cost and availability of insurance, he will appreciate that, as Minister for Finance, I am not in a position to comment on matters that are a commercial decision for that company.

Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is also reinforced by Solvency II Directive.

Nevertheless, the Government is acutely aware of the concerns of individuals, businesses, and voluntary/community groups across the country regarding the cost and availability of insurance, and is working to address them through the Action Plan for Insurance Reform. While work remains ongoing across Government Departments to deliver these reforms, it is important to acknowledge that significant progress has already been made. The first Action Plan Implementation Report, published in July, show that 34 of the 66 objectives included in the Action Plan have been 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 costs for businesses. As the insurance 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 recent meetings with the CEOs of the largest providers in the domestic market, has emphasised the need for firms to reduce premiums and increase their risk appetite to provide cover in new areas.

A further element of the Action Plan with particular relevance to community groups 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. The planned rebalancing of the duty of care, with a view to applying a common-sense approach to risk, is of particular relevance to the sector as it will help address so-called ‘slips, trips and falls’. My officials understand from their Department of Justice colleagues that these proposals are at an advanced stage.

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 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.

Brendan Griffin (Kerry, Fine Gael)
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207. To ask the Minister for Finance if his Department will engage with a company (details supplied) who are currently examining the possibility of providing insurance cover to mounted hunt clubs following the exit from the market by all other insurers; and if he will make a statement on the matter. [59079/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I note that the details supplied by the Deputy refers to a specific company. While I understand the concerns felt by many groups, including the one highlighted by the Deputy, around the cost and availability of insurance cover, he will appreciate that, as Minister for Finance, I am not in a position to comment on an individual commercial entity.

Likewise, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, or 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.

Nevertheless, I can assure the Deputy that 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 Reform sets out 66 actions across a number of policy areas. 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 in the Action Plan now completed. Of note is the implementation of new Personal Injury Guidelines, which substantially reduce award levels for a range of personal injury categories, and has resulted in an average reduction of 40% in award values via the Personal Injuries Assessment Board (PIAB). It is Government’s hope that this will result in lower insurance costs for both individuals and businesses, and provide relief to sectors such as those highlighted by the Deputy.

Another notable achievement is the creation of the Office to Promote Competition in the Insurance Market within the Department of Finance. The Office, which is chaired by Minister of State Fleming, continues to engage with a wide range of stakeholders, including the insurance industry, on a regular basis. In his recent meetings with insurance CEOs, Minister Fleming stressed the need for providers to reduce premiums and increase their risk appetite to provide cover in new areas. Some providers have noted that they are considering expanding their footprint in the insurance market, including potentially in high-risk activity sectors. I will continue to monitor this.

Finally, I would like 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.