Rose Conway-Walsh Demands Action on Soaring Insurance Premiums

Thank you. Minister, I want to bring your attention to the fact that businesses are seeing large increases in insurance premium for attempting to claim business interruption support. I've been contacted by a number of business owners that have been quoted huge increases in their insurance premiums. This is despite the only claims that they've made is for business interruption as a result of COVID. And my question is, are insurance companies increasing? premium for businesses that even attempt to claim for business disruption? And how widespread is this problem and what steps are being taken to protect vulnerable businesses? Thank you, Deputy, for your question. As you'll be aware, I'm not in a position nor indeed are the central bank in a position to intervene in the provision or pricing of insurance. This position is reinforced by the EU framework for insurance or the Solvency 2 directive. Consequently, companies cannot be directed as to how they price their policies or what terms and conditions they apply in relation to cover. It is my understanding that past claims history is one of the raising factors that insurers generally will use in making their individual decisions on whether to apply and offer insurance and what terms to apply. I'm firmly of the view that insurers, however, insurers, however, need to take a longer term perspective as regards to their customers, particularly to businesses that have been adversely affected by the pandemic and who may have had to make a claim against their business interruption policy. I believe that if insurers have experienced an overall reduction in claims cost during the pandemic period and expect savings to be made as a result of lower award levels arising from the personal injury guidelines, they need to pass these savings on to consumers and in particular businesses that may have been closed for much of the period. This is particularly important as businesses start to reopen their doors and we work to restart the economy over the coming months. As Minister of State with responsibility for insurance, excuse me, the Minister for State with responsibility for insurance, Minister Fleming, has recently met with individual insurers to press the need for premium reductions in this regard. And the Minister has taken this agenda and this issue very, very seriously. And I know he intends to meet the providers later in the year to continue to monitor progress in this area and to monitor the impact of the overall reform agenda on both the premium levels and on the risk appetites of insurers. Thank you, Minister. Thank you, Minister. Minister, can I give you an example of why I think that the insurance companies are completely ignoring both you and the Minister for State? So one case is a local business in Balmolet has seen their insurance premium go from €1233 in 2020 to over €4000 in 2021. Now that's a small business with a small turnover. Those kinds of extortionate increases would be crippling at the best of times. But to try and find that kind of money when you have seen such long closures would be impossible for many. Insurance companies have not yet paid out the business disruption claims and they're punishing customers for even making a claim. And we could potentially have the situation where a business seeds huge hikes in premiums for making a claim that may or may not be successful. And even if successful, they should still not be punished for making the claim. This is the reality of what's happening, Minister. Thank you, Deputy. And I think that it needs to be addressed. Thank you very much, Deputy. And myself and Minister Fleming are very much aware of that reality. We're aware of the challenge that many small businesses face at the moment with the rising cost of insurance. But this is the reason why we have had such focus on this issue in this Government and in the last Government. It's the reason why Minister Fleming has been working with Minister McAtee and now Minister Humphreys, in relation to the implementation of guidance for claims that are settled in court precisely to create an environment in which we are seeing more reasonable claims being settled within our courts. And that leading to the change in premia that both the Deputy and this Government want to see happen. There are many different elements within our action plan for insurance reform that are being delivered. And so far, for example, we've made progress on the implementation of personal injuries guidelines. We've set up an office to promote competition. Thank you, Minister. And we now have work underway with regard to the role of PIAP. And so many different things are underway in Cahirloch because we do want to address the affordability of premia and meet the needs of the businesses that the Deputy raised. Minister, I appreciate what you're saying, but that is absolutely of no use to the business in Belmolet that's seen his insurance increase so much. It's already a scandal that insurance companies are trying to escape paying out for the business disruption, despite it being exactly the type of protection that people and businesses pay for. We've seen the industry resist passing on any savings resulting from the lockdown to people in their motor insurance. We've seen the insurance companies try to deduct state supports from insurance claims, an outlandish attempt to turn business supports into insurance industry subsidies. There's clearly a view within the insurance industry that they can get away with what they want. This attitude has been encouraged by successive governments, and I would say, Minister, you fail to hold the insurance industry to account. You have to give a message to that person in Belmolet, that business in Belmolet, who has seen their insurance just because they even make a claim, never mind whether it's successful or not. It's about the regulation of a sector. It's about the regulation of a sector through an independent regulator, who have the powers to hold firms to account where things are done, that are not in keeping with regulation or where they involve a breach of law. And I accept the point that the general issues that I'm referring of might not be a solace to the specific company that the deputy is referring to, but it is the implementation of these policies that Minister Fleming, the Tornister and myself, along with other ministers, are working to do, that does have the ability to make a difference to these issues in the coming months and beyond that. And in particular, the work that has now been done by the Minister for Justice, by Minister Fleming in relation to personal injuries guidelines, that only came into effect now on the 24th of April, I believe is a very important moment in how we deliver the reform agenda that this government is committed to. And as I said in my earlier answer to the question from the deputy, Minister Fleming has already met the insurance sector on this very issue, and I know he and I will continue to meet them on this issue to ensure to do all we can to see these changes begin to be reflected in the premia that the businesses that the deputies are referring to face.