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Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach

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PRESS RELEASE: Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach – 4 April 2019

(PUBLICATION OF PR AND SUBMISSION EMBARGOED UNTIL 10.00AM 4TH APRIL)

Please see our submission to the Finance Committee by clicking here. 

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ISME will attend the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach on 4th April to update the members on Insurance reform.
  • Unfortunately, the insurance reform process has stalled. We only have the appearance of progress.  
  • The only reforms taking place are administrative in nature, and will not materially reduce the cost of insurance.
  • Insurance reform needs to be led by a cabinet minister, preferably the Minister for Justice and Equality.

General damages

General damages are too high and must be capped by law.There is no constitutional impediment to doing so.

Legal Costs

The Legal Services Regulation Act 2015 has failed to reduce legal costs, and gives no weight to the rights of citizens and business. Legal costs represent a significant component of the costs of insurance. Our legal system and judiciary are unjustly pro-plaintiff, and require immediate reform.

Awards

The extravagant size of awards in minor injuries cases, coupled with non-existence investigation of fraudulent claims, presents a massive incentive for fraudulent actions. Both must be tackled now.

The insurance industry

We have less information on our insurance industry than we did five years ago. The Solvency II regime has reduced the transparency of insurance data, and may be responsible for increased profits for insurers and increased premiums for the insured. We are concerned about the lack of underwriters in the Irish market, and about possible collusive or cartel-like behaviour among some of our insurance companies.

ENDS

Notes to the Editor: ISME should be referred to as the Irish SME Association

Please see our submission to the Finance Committee by clicking here. 

For further information, please contact ISME offices T: 01 6622755 E: [email protected]