Brendan Griffin (Kerry, Fine Gael)
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219. To ask the Minister for Finance his views on rising insurance costs (details supplied); and if he will make a statement on the matter. [25945/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I note that the question refers to the cost of insurance for a specific business. At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).

Nevertheless, this Government is aware that certain business sectors are currently facing difficulty in terms of affordability and availability of insurance, and has therefore continued to prioritise the delivery of the Action Plan for Insurance Reform. 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.

Minister of State Carroll MacNeill has met with the main insurers in the Irish market to set out the Government’s expectation that savings arising from this wide-ranging reform agenda will be reflected via reduced premiums, as well as increased availability of cover. In addition, the Office to Promote Competition in the Insurance Marketis working closely with IDA Ireland to help leverage the ongoing reforms, with the objective of targeting new entrants to the Irish market, or persuading current incumbents to expand their risk appetite. In my engagement with industry, including its representative body Insurance Ireland, I have also impressed upon them the importance of insurers increasing their risk appetite, especially to provide cover for small and niche sectors that may be experiencing issues with affordability and availability.

In terms of next steps, rebalancing the Duty of Care legislation (the Occupiers’ Liability Act 1995) is now a priority. This legislation, which is expected to be passed this summer, would 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.

In conclusion, I wish to assure the Deputy that seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. For my part, I am committed to working with colleagues to complete outstanding reforms, and monitoring their impact, with a view to achieving an improved insurance environment for all policyholders, including SMEs.