BUSINESS: Insurance crisis will see more company closures and job losses

29 August 2019
By Mary Bermingham

Govt inaction has seen the situation worse – says Cork TD

Fianna Fáil TD for Cork North West Michael Moynihan has warned that more business closures and job losses are on the way as a result of Fine Gael’s failure to get to grips with the continuing crisis in insurance.

This week saw another company forced out of business because it could not secure affordable insurance cover. The only option open to the leisure centre in Kildare was a quote costing four times as much as its current policy.

Deputy Moynihan said, “Unfortunately this story is becoming all too common. Over the past couple of months, we have heard from a number of companies which feel they have no choice but to close because they are cannot afford the huge premium costs or who cannot secure insurance at all. This is resulting in job losses right across the country.

“Fine Gael has allowed this situation to spiral out of control and livelihoods are being put at risk. These inflated insurance costs could have been mitigated if the government followed through on the recommendations from The Cost of Insurance Working Group report. Three years after the formation of the group we are still waiting on a national claims information database to be set up – it was meant to be up and running in June 2018.

“The government’s record on insurance reform has failed to deliver for consumers and now businesses are closing and jobs are being lost.

“I would urge the Minister and his government to step up their efforts to tackle insurance costs. Otherwise business closures and the ending of voluntary community groups will become the norm,” concluded Deputy Moynihan.

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