Written answers

Wednesday, 9 November 2022

Department of Finance

Insurance Industry

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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39. To ask the Minister for Finance if he has had discussions with the insurance industry in relation to the large difference in insurance premiums being charged by the sector to new entrants to the taxi industry compared to existing operators, which is a major disincentive to new persons in getting involved in the industry; and if he will make a statement on the matter. [55880/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Firstly, it is important to note that neither I, nor the Central Bank, have the power to direct insurers to sell any specific product, or to make it available at a particular price. This stance is reinforced by the EU Solvency II directive which expressly prohibits Government from doing so.

Notwithstanding this, insurance reform is a key priority for this Government. As the Deputy is aware, we have established the Cabinet Committee Sub-Group on Insurance Reform, chaired by the Tánaiste, which is overseeing the implementation of the Action Plan for Insurance Reform. This ambitious strategy sets out 66 actions to help bring down the cost of insurance; encourage more competition in the market; and prevent fraud, thus benefitting consumers, the business community and voluntary organisations. The latest implementation report shows that approximately 90 per cent of key deliverables are now completed or ongoing, bringing tangible benefits to insurance customers across society as a whole.

The market continues to show signs of responding to the Government reform agenda. Sectors such as delivery drivers, inflatable operators and equestrian activities, which had experienced capacity issues in the recent past, are now able to access insurance. Despite the current upward trend in inflation, motor insurance also continues to fall. CSO data for September 2022 shows that premium prices fell by 10 per cent year-on-year and are now over 40 per cent lower than the July 2016 peak. Government’s focus has shifted to delivering the remaining aspects of the Action Plan, particularly the overhaul of the duty of care and reform of PIAB, both of which should positively impact public-facing sectors, such as the taxi industry identified by the Deputy.

Officials in my Department have engaged regularly with both underwriters and brokers on issues relating to insurance availability and affordability. They have been informed that providers are obliged to assess the risk involved as part of any application for insurance, which will be specific to the individual applicant, and that the availability of cover depends on a number of factors which are assessed on a case-by-case basis. At the same time, Government has acted to deliver the changes that were sought by the insurance industry. It is critical that insurers, in turn, pass on savings achieved as a result of the reform agenda to customers, in the form of reduced premiums and expanded risk appetite. 

I wish to assure the Deputy that I will continue working with my Government colleagues to ensure the timely implementation of the Action Plan, which will bring benefits to the wider economy and society, including the taxi industry which is the subject of this specific question.

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