MEDIA STATEMENT

Saturday, 6th March 2021: The Irish Hotels Federation (IHF), which represents hotels and guesthouses across the country, has said the reductions in levels of awards for minor personal injuries announced today fall far short of what is required to bring insurance costs back down to sustainable levels.

Acknowledging today’s decision by Judicial Council as a first step in the right direction, Michael Magner, Chair of the IHF’s Insurance Committee, said reductions of at least 80% are required to bring Ireland back to international norms. He called on the Government to maintain the momentum and deliver on the further legislation and reforms necessary to bring about substantial reductions in excessive insurance premiums.

“The Government must now fast track the reform of the Personal Injuries Insurance Board (PIAB) and enact duty of care and perjury legislation. They must also provide the necessary resources for An Garda Síochána so they can address the serious issue of insurance fraud,” said Mr Magner.

“Insurers have to play their part now and reduce insurance premiums in line with cuts in levels of awards. They must also adopt a more robust and concerted approach in defending exaggerated and spurious claims in court, rather than settling as continues to happen. This has been to the detriment of businesses including hotels in recent years, resulting in excessive and unjustifiable insurance premiums. The exorbitant levels of awards and lack of consistency have also made Ireland less attractive for insurers. This must be addressed as it has reduced competition in the insurance market and driven up costs, diminishing our competitiveness, which is ultimately borne by the consumer.”