Aviva Insurance Ireland has announced plans to provide increased insurance capacity to businesses in the hospitality sector after the implementation of a number of key measures in the Government's Action Plan for Insurance Reform.
Aviva said it will focus on restaurants, pubs and selected hotels, adding that the move will provide an increase in competition in the insurance market available to these businesses.
It said the decision to provide insurance cover to certain businesses in the hospitality sector has come about as a direct result of the introduction of a range of measures in the Government's Action Plan for Insurance Reform, which was designed to reduce the cost burden on businesses.
A key development for Aviva was the introduction of the Personal Injuries Guidelines in 2021, which replaced the Book of Quantum and saw personal injury award sizes reduce, excluding the most serious and catastrophic injury claims.
Aviva noted that the guidelines have been confirmed as legally binding by the Supreme Court.
Brian Mahon, Managing Director of Commercial Lines at Aviva, said the company was pleased to offer increased insurance capacity to businesses in the hospitality sector.
"We believe that Government has done sufficient reform to allow us to widen our appetite, despite more work needed in reducing record plaintiff legal fees and very low plaintiff acceptance rates in the Personal Injuries Resolution Board (PIRB)," he said.
"The key measure that influenced our decision to increase our insurance cover to this important sector was driven by the 2023 amendment that governs occupiers' duty of care under the Occupiers' Liability Act 1995. The 2023 amendment of the Act that came into effect on 31 July 2023 introduced some much-needed balance between an occupier's duty of care and the personal responsibility of visitors to their premises," he explained.
"This amendment, together with the reduced award sizes for personal injury claims brought about by the introduction of the Personal Injuries Guidelines, mean that we now have a more positive environment in which to write liability business in Ireland and are in a position to widen our risk appetite in this area," he added.
