Dáil Éireann Debate, Tuesday - 23 September 2025
212. Deputy Ken O'Flynn asked the Minister for Finance if his Department has assessed the disproportionate impact of rising insurance premiums on small and medium-sized businesses in Cork, particularly in the hospitality and retail sectors; and if he will publish any findings. [49849/25]
View answerNeither I as Minister for Finance nor the Central Bank of Ireland can intervene in the provision or pricing of insurance products. These are commercial decisions taken by insurers in line with EU law, specifically the Solvency II Directive, which sets out the framework for insurance within the Single Market.
However, I fully recognise the concerns of small and medium-sized businesses, including those in the hospitality and retail sectors in Cork, regarding the affordability and availability of cover. Insurance reform remains a central priority for Government, and we have been pursuing a comprehensive programme of reform to improve outcomes for consumers and businesses.
Government have already delivered significant changes through the 2020 Action Plan for Insurance Reform. These included the rebalancing of the duty of care, the introduction of the Personal Injuries Guidelines, and the establishment of the Office to Promote Competition in the Insurance Market. Together, these measures have reduced claims costs, improved transparency, and created the conditions for greater competition in the market.
Of particular importance for the hospitality and retail sectors is the overhaul of the duty of care under the Courts and Civil Law (Miscellaneous Provisions) Act 2023. This reform addresses so-called “slips, trips and falls” claims, which are particularly prevalent in high-footfall sectors, and will reduce the likelihood of such cases proceeding to costly litigation. The Personal Injuries Guidelines are also having a measurable impact, with claims now being resolved more quickly and at lower cost through the Injuries Resolution Board. This is an indication that the Government’s reform agenda is having an impact. More capacity is entering the Irish market, competition has improved, and rates are beginning to fall in a number of segments. For many businesses, particularly SMEs, this means more choice of cover and greater affordability.
Building on this progress, Government published a new Action Plan for Insurance Reform in July 2025. This sets out a further series of targeted actions, including implementing measures to enhance insurance and claims related data through further thematic and sectoral analysis and proactive engagement with international insurers to encourage new market entrants, with the goal of further boosting supply and improving affordability across all sectors.
I wish to assure the Deputy that Government policy remains firmly focused on ensuring that the benefits of reform are realised for businesses and communities. Government will continue to prioritise insurance affordability and availability so that SMEs across Ireland can plan with greater confidence in a more sustainable and competitive insurance market.
