Holly Cairns (Cork South West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

152. To ask the Minister for Finance the steps he is taking to reduce the cost of insurance for the hospitality sector. [3063/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

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 commercial matter. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).

Notwithstanding this, Government is acutely aware of the concerns felt by many sectors, including the hospitality one as highlighted by the Deputy, regarding the cost and availability of insurance. Accordingly, significant reform has been prioritised, with the multi-faceted Action Plan for Insurance Reformsetting out 66 actions which aim to bring down costs for consumers and business; encourage market competition; prevent fraud and reduce the burden that insurance costs can have on business, community and voluntary organisations. Ninety per cent of the actions contained therein are now being delivered or have been initiated, and work is continuing to complete the remainder. Of particular relevance to the hospitality sector is the upcoming reform to the Duty of Care legislation, which is being led by the Department of Justice. This will address issues of “slips, trips and falls” so prevalent in high-footfall and public-facing activities. It also has the potential to bring extra capacity to the insurance market.

We can already see that the insurance market is responding to the emerging success of the Government reform agenda, with insurers now willing to write business in areas that they had previously avoided. Certain recreational sectors, such as equestrian activities and inflatables hire, can now access insurance through the formation of group schemes. Department officials continue to engage with insurance stakeholders to understand market gaps, and it is Government’s expectation that any savings achieved as a result of the reform agenda will be passed on in the form of reduced premiums. It should also be noted that the Exchequer has provided significant fiscal supports for businesses, including in the hospitality sector.

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 continue to work with my Government colleagues to ensure that implementation of the Action Plancan have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.