Alliance for Insurance Reform

The Alliance brings together 39 civic and business organisations from across Ireland, representing over 55,000 members, 690,000 employees, 599,000 volunteers and 374,000 students in highlighting the negative impact of persistently high premiums and calling for real reforms that will quickly reduce liability to affordable levels and keep them that way. As a member of ‘The Alliance for Insurance Reform’, we have been working with the Alliance to drive key changes in the insurance market on our member’s behalf. On Thursday 21 January, the Alliance published two press releases with regards to their efforts to reduce awards for minor personal injuries. 

Alliance calls on Judiciary to reduce damages for minor injuries by 80%

The first press release issued by the Alliance on 21 January focuses on the decisions the judiciary are due to make with regards to minor personal injuries. The new guidelines will replace the Book of Quantum which currently states the amounts that may be awarded in personal injury claims cases. The new guidelines are due to be decided upon between 5 February and 31 July 2021.

The Alliance for Insurance Reform has called on the judiciary to have regard to the common good in their deliberations and reduce awards for minor personal injuries by 80%. Peter Boland, Director of the Alliance, which represents charities, voluntary and community groups, and SMEs severely affected by insurance costs said, “The single biggest element of the cost of insurance, as determined by the Cost of Insurance Working Group, the Personal Injuries Commission and the Central Bank’s National Claims Information Database, is compensation; and general damages for minor injuries account for the vast majority of compensation pay-outs”. He asked that rates in Ireland be reduced to “the norm”, bringing minor injury claims to equate with England and Wales.

Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and director of the Alliance said “Insurance costs remain an existential issue for Irish SMEs, charities, sports and cultural organisations, voluntary and community groups. The Irish economy is not going to recover from Covid-19 through SMEs, or Irish society through the voluntary & community sector, unless insurance is sorted.”

Alliance welcomes Report of the SME Taskforce

The second press release issued by the Alliance welcomed the Government’s Report of the SME Taskforce: SME and Entrepreneurship Growth Plan.

Key insurance-related recommendations in the report include:

• Dramatically reduce the cost of EL & PL insurance via measures targeted at the cost of claims and the duty of care.
• Encourage greater competition by seeking out additional multinational underwriters to supply the Irish market.
• Develop best practice health & safety training for SMEs via Skillnet.
• Creating a process for attracting EU operators to the Irish market and/or encourage Irish players to provide insurance services for SMEs.

Peter Boland, director of the Alliance stated that while this report is welcomed, we now have nineteen reports from the state which highlight the need for insurance reform and that it is the actions that follow that will matter.

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