Businesses should obtain fair insurance under new Action Plan – Nelson Murray

Unsustainable insurance costs for businesses should be comprehensively dealt with under the new Action Plan for Insurance Reform, a Fine Gael Senator has said.

Senator Linda Nelson Murray, Seanad Spokesperson on Enterprise, said the Action Plan, along with the decision to pause the increase of the personal injuries guidelines two weeks ago, signal Government’s commitment to providing a stable claims settlement environment.

Senator Nelson Murray said: “As an advocate on insurance reform now for 7 years, this is a strong action plan with 26 commitments to further combat the significant challenges businesses are facing in trying to obtain insurance at a fair price.

“The Department of Finance undertook a wide-ranging public consultation which received over 70 detailed submissions. As a small business owner myself, I made submissions along with some of my Fine Gael colleagues and I welcome the inclusion of many of these in this plan.

The very important issues identified and committed to in this plan include:

• Recognition of sectors still struggling to secure insurance
• Consideration of a new centralised Insurance Fraud Coordination Unit
• Expanding transparency to ensure policyholders actually know how their premiums are calculated
• Strengthening the work of the Injuries Resolution Board’s remit, resulting in less cases going to court
• Amending the Judicial Council Act by adjusting the review period to a longer term and ensuring mandatory consultation with the Injuries Resolution Board
• Comparative analysis of awards versus our UK and European counterparts
• Scales of legal fees

“This plan is ambitious, and it is very important to note that many reforms have already been completed in our last Action Plan of 2020. New entrants to the motor insurance market have impacted positively, but there hasn’t been a new provider for public liability for many years and legal costs are still a concern. Policy holders in the leisure industry, childcare sector and adventure sports need to see a reduction in their premiums and this is a barrier for many small and medium sized businesses.  Many must rely on group insurance schemes because it is still impossible to obtain insurance independently.

“This Action Plan provides the framework to encourage further competition in the insurance market, enhancing transparency and affordability across all types of insurance. It’s important the Sub Cabinet Committee on Insurance continues to meet regularly to ensure the 26 actions are fulfilled so all our businesses can obtain adequate insurance, and at a fair price. I will continue to work with Minister for Enterprise Peter Burke who is focused on driving down business costs, which is a key priority of this government.”