Aviva Insurance Ireland plans to increase its coverage of the hospitality sector following the implementation of several Government reforms of the sector, including duty-of-care measures brought in last year to address the issue of slips, trips and falls.
The UK-owned insurer said it plans to increase its liability offering in the sector, with a focus on restaurants, pubs, and selected hotels.
Insurance brokers say the move should provide a significant boost to coverage competition in a sector that is subject to fragmented pockets of focus by insurance companies based in the State. Much of the coverage comes from overseas players, such as Lloyds of London market participants, who mainly provide capacity through managing general agents (MGAs).
They say that Aviva had been the market leader in this space before it got out of it more than a decade ago when it became a loss-making line of business amid a surge in injury claims and costs. Axa and AIG, for example, are active in the small cafes and restaurants space, while FBD has a focus on pubs and restaurants, according to brokers. Allianz also covers selected parts of the sector, they said.
How does VAT in Ireland compare with countries across Europe? A guide to a contentious tax
‘I was a cleaner in my dad’s office, which makes me a nepo baby. I got €50 a shift’
Will we have a tax liability if Dad gives us his home while he is alive?
Finding a solution for a tenant who can’t meet rent after splitting with partner
Could office construction in Dublin soon come to a full stop?
Brokers put the size of the broader hospitality market, measured by annual gross written premiums, at between €100 million and €150 million.
The expanded appetite to provide insurance cover to certain businesses in the hospitality sector has come about as a direct result of the introduction of measures in the Government’s plan for insurance reform, which was designed to reduce the cost burden on businesses, said Aviva.
These include: the introduction of judge-approved personal injury award guidelines three years ago, which brought about sharp reductions in awards for minor injuries; the expansion of the role of the Injuries Resolution Board (formerly the Personal Injuries Assessment Board); and duty-of-care reforms to rebalance the responsibilities of property owners and visitors.
“We are pleased to offer increased insurance capacity to businesses in the hospitality sector,” said Brian Mahon, managing director of commercial lines at Aviva. “We believe that Government has done sufficient reform to allow us to widen our appetite, despite more work needed in reducing record plaintiff legal fees and very low plaintiff acceptance rates in the IRB.”
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
