“Historically, insurance was based on the principle of many policyholders covering the losses of the few,” said AIR Director Peter Boland, “Increasingly, what we’re seeing is smaller and smaller sectors being expected to pay their way by insurers.
“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. We’ve 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.”
Among the 45 identified have been Festivals & Events organisers, hotels, late-night venues and pubs.
“In recent weeks we’ve seen sectors as diverse as thatched cottage owners and motorsport events struggling to get any sustainable insurance cover,” he stated, “We expect this trend to continue and even worsen.”
Ivan Cooper, Director of the Alliance and Director of Public Policy at the Wheel, said, “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. We ask that this response be initiated in this financial year and further developed through the 2023 Budget.“