Barry Ward (Dún Laoghaire, Fine Gael)
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193. To ask the Minister for Finance if his attention has been drawn to the concerns of business owners in the outdoor recreation sector and other sectors regarding the prohibitive cost of insurance; the actions he is taking to address these concerns; and if he will make a statement on the matter. [36893/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, I wish to acknowledge the difficulties experienced by the outdoor recreation sector in securing affordable and sustainable public liability insurance. I thank the Deputy for raising this issue. Outdoor activity providers make a valuable contribution to our economy and society by supporting tourism, local employment and wellbeing in rural and urban communities alike.

It is important to note that neither I as Minister for Finance, nor the Central Bank of Ireland has the authority to intervene in the pricing or availability of individual insurance products. These are commercial matters for insurers, subject to prudential and conduct supervision under the EU’s Single Market framework, particularly the Solvency II Directive.

Nonetheless, the Government remains strongly committed to addressing the insurance challenges facing this and other sectors. The Office to Promote Competition in the Insurance Market, chaired by Minister of State Troy, has met extensively with stakeholder organisations in the outdoor recreation space to understand their needs and provide support. The Office has also facilitated the connection of these groups with insurers who have the relevant risk appetite and the development of group schemes that may provide more sustainable cover.

Health and safety practices, risk mitigation and the education of insurers around the nature and management of sectoral risk all play an important role in improving access to cover. However, these must go hand in hand with continued reform and increased competition. While certain reforms – such as the introduction of the Personal Injury Guidelines – have begun to stabilise award levels, delays in litigation and wider inflationary factors continue to impact premiums. Competition also remains limited in certain segments of the market, partly due to the exit of UK-based insurers following Brexit.

The Government is currently developing a new Action Plan for Insurance Reform with a focus on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance, including insurance for businesses. The public consultation phase of the Action Plan closed on Monday 19 May after a three-week period. Over seventy submissions were received from industry and community stakeholders. The new Plan will build on the progress of the 2020 Action Plan, which delivered significant achievements, most notably the rebalancing of the Duty of Care, reforming the Injuries Resolution Board, the introduction of new Personal Injuries Guidelines, the establishment of the Office to Promote Competition in the Insurance Market, the banning of price walking in home and motor insurance markets. Minister of State Troy, together with officials in the Department of Finance, have reviewed the feedback received and are in the process of finalising a list of actions for the new Action Plan for Insurance Reform. When finalised, the Action Plan will be considered at political level across Government before being published and then moving into the implementation phase.

The Government remains committed to ensuring that insurance is accessible, affordable and transparently priced. Our goal is to promote a competitive market that supports the widest possible range of social and economic activities – including those involving higher or more specialised risks – through targeted reforms, regulatory clarity and active engagement with the insurance industry.