Sir, – We would like to respond to the recent article “Hospitality sector sees insurance premiums falling by up to 30 per cent” (Business, September 27th), which references improvements in insurance accessibility and affordability within the hospitality sector.
It is heartening to hear that some in the hospitality sector are witnessing reductions in insurance premiums and improved policy options. However, we are concerned that the article may give rise to an impression of industry-wide improvements.
As the main representative bodies for hotels, restaurants and publicans, such an impression would not accord with the reality of the vast majority of our member organisations who continue to struggle to secure affordable insurance cover, with many members telling us about premium increases on a regular basis and a lack of underwriters willing to insure hospitality businesses.
This is despite the many structural improvements made to Ireland’s insurance market in recent years, including the introduction of the judicial guidelines to replace the book of quantum, and the recently commenced reforms to the duty of care. Moreover, the total number of personal injury claims submitted to the Personal Injuries Assessment Board (PIAB) is down by 46 per cent between 2016 and 2022, with the average PIAB public liability assessment down 39 per cent compared to the average 2020 assessment under the old book of quantum. A recently published Central Bank report showed a 12 per cent reduction in the total cost of settled injury claims to H1 2022 from the 2015-2019 pre-Covid average. Taken together, it makes a compelling argument for reduced premiums.
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Premium reductions of the order mentioned in the article (20 per cent to 30 per cent) should be anticipated on foot of these reforms and are a sign to others in the insurance market of what is now expected.
However, for the majority of businesses working in the hospitality sector this has yet to materialise.
Rather than prematurely celebrating what might still prove to be a false dawn, it is imperative that the Government continue to hold insurers’ feet to the fire until these tentative signs of premium improvements become a sector-wide reality. – Yours, etc,
TIM FENN,
Irish Hotels Federation;
ADRIAN CUMMINS,
Restaurant Association
of Ireland;
DONALL O’KEEFFE,
Licenced Vintners
Association;
PADRAIG CRIBBEN,
Vintners Federation
of Ireland,
Dublin 14.