Get ‘crippling costs of insurance under control’
Small businesses needed action to tackle rising insurance costs, says RGDATA.
“The Cost of Insurance Working Group (CWIG) started with a bang back in 2016 when an RGDATA delegation of independent retailers gave a passionate presentation on why small businesses needed action to tackle rising insurance costs. It ended with a whimper on Friday when it published its final report,” said RGDATA’s Tara Buckley. “It ended with a whimper on Friday when it published its final report.”
Duty of Care
The insurance reform agenda has now been passed to a Cabinet Sub Committee led by the Tanaiste and packed with all the key Ministers including Finance, Justice and Public Expenditure. RGDATA has sent the Sub Committee an amended Occupiers Liability Act that rebalances the onerous Duty of Care imposed on property owners.
“RGDATA has drafted the legislation. Now we are urging the Government to get moving on introducing the changes required to get the crippling costs of insurance under control,” RGDATA Director General Tara Buckley.
Alliance for Insurance reform
The Alliance for Insurance Reform welcomed the establishment of a Cabinet Committee Sub-Group on insurance reform, to replace the Cost of Insurance Working Group.
Peter Boland, director of the Alliance said that “The Sub-Group on insurance reform is to be welcomed. Its predecessor, the Cost of Insurance Working Group, had become a box-ticking exercise and unfortunately for policyholders, none of the boxes that were ticked applied downward pressure on insurance costs. The success of this Sub-Group will be measured by the speed with which it moves to get real reforms in place.
Reduction in personal injury claims
“We note that on the launch of the plan, Deputy Sean Fleming, Minister of State at the Department of Finance identified a substantial reduction in the level of damages for personal injuries paid out in Ireland as being key to meaningful reform. Additionally, we would see the rebalancing of the duty of care applied to policyholders in Ireland as an essential part of the reform agenda.
“We look forward to seeing the detailed plans and timelines of the Sub-Committee and trust that it will move swiftly to implement them as it is clear that the Irish economy will not recover from the pandemic through SMEs, nor will Irish society recover through charity, voluntary and community groups, unless insurance is sorted.”