Businesses and organisations in 45 sectors of the economy are struggling to find insurance cover for their activities or are limited to one underwriter in Ireland, the Alliance for Insurance Reform has warned.
The Alliance has called for direct government intervention to ensure that no sector or Irish society is left behind in the ongoing insurance reform process, either unable to find insurance or paying excessive premiums to the insurer with a monopoly on their sector.
The body, which represents 47 civic and business organisations with a combined 700,000 employees, listed charities, childcare providers, hotels, pubs, travel agents and drivers of old cars and young drivers among the sectors and groups struggling to find cover.
"Historically, insurance was based on the principle of many policyholders covering the losses of the few. Increasingly what we are seeing is smaller and smaller sectors being expected to pay their way by insurers," said Peter Boland, director of the Alliance for Insurance Reform.
"This global insurance trend of micro-segmentation means that in an economy the size of Ireland’s, there will inevitably be smaller sectors or individual entities that cannot get insurance to cover their activities.
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"We have identified 45 sectors and sub-sectors that are struggling to get cover at all or are reduced to one underwriter who effectively has a monopolist’s hold over their sector. Many of these will need an intervention to survive.
“In recent weeks we have seen sectors as diverse as thatched cottage owners and motorsport events struggling to get any sustainable insurance cover. We expect this trend to continue and even worsen.”
The Alliance's Ivan Cooper, director of public policy at The Wheel, said the state had provided cover through local authorities in "difficult cases" such as the Spancilhill Fair in Clare and Stephenstown Pond in Louth.
He added, however, that these cases "piecemeal" and done in a "last-minute fashion" and called on the government to develop a formal response to the issue with the insurance industry.
“We urge the Minister of State with responsibility for insurance, Sean Fleming TD, to take the initiative and develop a formal response to this issue with the insurance industry as a matter of urgency, so that critical elements of the State’s community, cultural, heritage and voluntary infrastructure, much of it endorsed, encouraged and financially supported by the State, can be protected," Cooper said
"We ask that this response be initiated in this financial year and further developed through the 2023 Budget.“
Other sectors, sub-sectors and groups struggling with insurance identified by the Alliance include: adventure centres that deal with children, aqua parks, artist and art organisations, bike shops, bouncy castle operators, caravan parks, car rental, children's play centres and playgrounds, circuses, climbing walls, and coasteering.
The Alliance also listed drivers of old cars, educations, equestrian sports, festivals, high rope centres, home care providers, ice skating rinks, incoming tour operations, independent marts, karting tracks, late night venues, minority sports, mounting biking, private buses and coach hire, repair cafes, road haulage, street artists, taxis, trampoline centres, tyre depots, and vehicle recovery operations.
(Pic: Getty Images)
