PRESS RELEASE

31^st July 2024

• Significant disappointment that the much heralded reforms to the duty of care have not led to the promised reductions in premiums.
• “At a time when costs are increasing for all businesses, we needed this reform to deliver.”

“My clear expectation of the insurance industry is that they will respond, and respond quickly and appropriately, both by reducing their premiums and extending their risk appetite.”

So said the then Minister with responsibility for insurance, Dr Jennifer Carroll MacNeill TD last year ahead of the commencement of the reforms to the duty of care.

Now twelve months on since the commencement of this important legislation, liability premiums have yet to come down for the vast majority of businesses, sporting organisations, charities and voluntary groups, and are going up in many cases.

Speaking on the one year anniversary of the new laws commencement grocery store owner and Alliance Board member, Flora Crowe said “there is significant disappointment that these much heralded reforms have not led to the reductions in premiums we were promised. At a time when costs are increasing for all businesses, we needed this reform to deliver.

I said this time last year that we expect insurers to deliver lower premiums immediately as the risk associated with every new or renewed policy has just reduced significantly. This has not happened in any meaningful way and, incredibly, many businesses, sporting and community organisations are actually dealing with premium increases.”

Earlier this year, an Alliance survey of 690 organisations found premiums had not come down for 87% of respondents and were increasing in many cases.

At a time when insurers are making record profits we call on the Government to do more to ensure the benefits of its programme of reform are passed on to those for whom they were intended and who need it most. They told us we should expect premiums to come down and they need to deliver on this.

—ENDS—

FOR FURTHER INFORMATION CONTACT: contact@insurancereform.ie or Alliance CEO, Brian Hanley at 086 8620 974.

Notes:

1, The Alliance for Insurance Reform brings together 46 civic and business organisations from across Ireland, representing over 55,000 members, 700,000 employees, 614,000 volunteers and 374,000 students in highlighting the negative impact of persistently high premiums and calling for real reforms that will quickly reduce liability and motor insurance premiums to affordable levels and keep them that way.

2. Duty of Care Reforms

The commenced legislation contained four key developments regarding Occupiers’ Duty of Care:

Inserting into primary law a number of recent court decisions which rebalance the duty of care owed by occupiers to visitors and recreational users

Changing the standard to clarify that when the occupier of a property has acted with reckless disregard for a visitor or customer, it is the standard of reckless disregard rather than reasonable grounds which should apply in relation to any consideration of liability

Limits to the circumstances in which a court can impose liability on the occupier of a premises where a person has entered onto premises for the purpose of committing an offence; and

Allowing for a broader range of scenarios where it can be shown that a visitor or customer has voluntarily assumed a risk resulting in harm

3. Link to article with Minister Carroll MacNeill remarks here

4. Links to newspaper coverage of insurer and broker profitability – Aviva, FBD, Allianz and the broker Arachas. The Central Bank NCID report for 2022 also found that liability premiums increased by an average of 8% in twelve months, at the same time average insurer profits increased by 55%.

5. Alliance survey 2024 below: