Holly Cairns (Cork South West, Social Democrats)
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77. To ask the Minister for Finance the steps he is taking to addresses high insurance premiums for SMEs. [21233/23]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will appreciate, neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).

Nevertheless, this Government is continuing to prioritise insurance reform through the whole-of-Government Action Plan for Insurance Reform, which aims to improve the cost of insurance for all groups, including SMEs. The latest implementation report, published in November 2022, indicates that significant progress has been achieved, with the vast majority of actions now completed, and the remainder ongoing.

Key reforms include the introduction of the Personal Injuries Guidelines, with data from the Personal Injuries Assessment Board (PIAB) indicating that the overall average award has fallen by 38 per cent compared to awards made in 2020 under the Book of Quantum. Another key, complementary action is the Personal Injuries Resolution Board Act 2022, which aims to increase the number of personal injury claims settled through the PIAB, thereby reducing the expense and time associated with personal injuries litigation.

Further actions aimed at lowering costs include measures to reduce fraud, and legislation placing perjury on a statutory footing for the first time. Given the extent of this reform, and the wide range of measures being implemented, it is necessary for the insurance industry to pass on benefits to its hard-pressed customers.

According to the second NCID Report on Employers’ Liability (EL), Public Liability (PL) and Commercial Property Insurance, published in June 2022, 57 per cent of package policies were for a premium of less than €1,000, and 92 per cent of policies had a premium of less than €5,000. Only 2 per cent had premiums over €25,000. This would appear to indicate that for the vast majority, insurance premiums seem broadly within a range with what one might expect for the size and distribution of businesses.

Notwithstanding this, I acknowledge that difficulties remain for some SMEs. Upcoming legislation to rebalance the “common duty of care” via amendments to the Occupiers’ Liability Act 1995, is of particular relevance for this sector. These amendments, which are in line with the Government policy objective of restricting the liability of occupiers, are being brought forward via the Courts and Civil Law (Miscellaneous Provisions) Bill 2022.

This legislation is the responsibility of the Minister for Justice, and is currently being considered by the Seanad third stage. It is my hope that it can be completed as soon as possible, as it should help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses, particularly those engaged in high-risk/high-footfall areas, where claims associated with ‘slips, trips and falls’ are more prevalent.

For my part, I remain committed to working with colleagues to complete outstanding reforms, and monitoring their impact through future NCID reports, with a view to ensuring that the Government’s Action Plan can lead to improvements in both the price and availability of cover for businesses, including SMEs.