Last week the Rural Independent Group brought a motion before the House regarding the high costs of motor insurance and today I raise an issue of equal importance, namely, the spiralling cost of business insurance.

While Brexit is probably the number one issue of concern at the moment, the cost of insurance affects every single Irish business from a small shopkeeper to a large exporter. Many small business owners tell me this is the number one issue that is likely to force the closure of their business in the next two years, affecting their viability and ability to grow and expand. While I welcome the establishment of the cost of insurance working group and the publication of its report, action is not happening quickly enough and many businesses will close before there is a real reduction in insurance premiums, unless the Government takes decisive action now. Last week I listened to Michael Magner, owner of the Vienna Woods Hotel in Cork, who is also chairman of the insurance committee of the Irish Hotels Federation. While being interviewed on the "Today with Sean O'Rourke" show, he stated his own insurance costs had risen from €10,000 in 2006 to €86,000 in 2016 and to a staggering €156,000 last year. In my own constituency, McCambridge's of Galway, which is one of the longest-established businesses in Galway city, has seen its total insurance bill rocket from €20,000 in 2015 to €50,000 in 2016 and then to €102,000 in 2017. These are just two examples, I could list hundreds of horror stories. No business can sustain this.

Such is the concern that after a decade and a half, the Alliance for Insurance Reform was relaunched in January to represent businesses, community and voluntary organisations amid concerns that the spiralling cost of cover is causing firms like shops and pubs to go out of business. This group is headed up by Pat McDonagh of Supermac's, who has long been critical of the compensation culture that is to blame for much of the rising cost. He has used closed-circuit television, CCTV, in his business to try to reduce the number of fraudulent claims but he is still frustrated by the fact that claims are often settled by insurance companies without consultation, which in turn encourages others.

The number and diversity of businesses and voluntary organisations that have joined the Alliance for Insurance Reform since it relaunched is a clear indication of the level of concern among business owners about this issue. The alliance is calling for an urgent response from the Government to address the level of awards and the effective bypassing of the Personal Injuries Assessment Board as a means for dealing with claims. It wants to prevent exaggerated and misleading claims being pursued and settled and real transparency on how premiums are calculated, including information on how and why claims are settled.

Can the Taoiseach outline exactly what clear and decisive action is being taken right now by the Government to address this issue, which is affecting the viability of so many businesses and voluntary groups across the country?

I thank the Deputy for raising this important issue. I am very conscious of the impact of the rising cost of insurance and its enormous cost burden on individuals and in particular on businesses around the country. In recognition of the increased cost of insurance for motorists and businesses in recent years, a cost of insurance working group was established under the chairmanship of the Minister of State at the Department of Finance, Deputy D'Arcy. It examined the factors that led to increases in the costs of motor insurance and insurance for business. In respect of businesses specifically, the working group examined employer liability and public liability insurance areas as these represent significant business lines that have been identified by a range of business sectors as having increased disproportionately in cost in recent years. Work to implement the recommendations of these reports is now advanced and is well under way. It is hoped that the implementation of the recommendations will lead to greater stability in the pricing of insurance for both motorists and businesses.

We must remember, however, that neither the Minister for Finance nor the Central Bank can interfere in the pricing of insurance products. This is a private market and as these matters are of a commercial nature and are determined by insurance companies, they must be based on an assessment of the risks they are willing to accept.

I thank the Taoiseach for his response. The Alliance for Insurance Reform, relaunched in January, brings together 20 civic and business organisations from across Ireland. It represents 35,000 members, more than 600,000 employees and 41,300 volunteers. This time around, it is much more broadly based than in the past, taking in charities, festivals and sports organisations, as well as small and medium enterprises.

The alliance issued a statement today calling for the establishment, on a statutory basis, of a financial conduct authority to oversee the insurance industry on the back of the insurance companies having announced massive profits. For example, last week, FBD Insurance announced profits of €45 million and RSA Insurance Ireland announced profits of €10 million. Directors of the alliance, Mr. Peter Boland and Mr. Eoin McCambridge, have called for the establishment of this authority as there has been no meaningful reform of the insurance industry despite the establishment more than 18 months ago of the insurance working group.

Will the Taoiseach commit to the establishment of a financial conduct authority to protect the interests of policyholders and revert to this House with a clear, meaningful change on insurance costs for businesses?

I cannot give a commitment that I will set up a new authority. It is often the solution in Ireland to set up a new authority but it does not always solve the underlying problem. The people referenced by the Deputy are a serious group of people and we will take their proposals on board. The Minister of State, Deputy D'Arcy, who is taking the lead on behalf of the Government in regard to reducing the cost of insurance for individuals, homeowners, motorists and business, has invited them to meet him to discuss their proposals. I welcome that the Deputy has raised this issue. As I said, the Minister of State, Deputy D'Arcy, is keen to meet the group and to examine its proposals with a view to making some progress on them.