Bouncy castles and thatched buildings added to list of sectors that struggle to secure insurance

Alliance for Insurance Reform wants direct Government intervention

A range of small business sectors struggle to get cover at all or reduced to one underwriter option.

The continued trend of micro-segmentation of the insurance market has resulted in a diverse range of business sectors in Ireland struggling to get insurance cover for their activities, the Alliance for Insurance Reform has said.

Festivals and events, bouncy castle operators, coach operators, hotels, circuses and childcare providers have all reported struggles to get cover or that their sector has been reduced to just one underwriter.

The alliance said in recent weeks it had seen sectors as diverse as thatched cottage owners and motorsport events added to the list and said it expected the trend to worsen. It has identified a list of 45 sectors and sub-sectors that struggle to secure insurance cover and wants the Government to develop a formal response to the issue.

"Historically, insurance was based on the principle of many policyholders covering the losses of the few," Peter Boland, director of the alliance said.

Owners of thatched buildings report difficulty finding insurance.

"Increasingly what we are 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."

Ivan Cooper, director of the alliance and director of public policy at The Wheel said: “The State, through local authorities, has already responded to some difficult cases such as the Spancilhill Fair in Clare and Stephenstown Pond in Louth, but this is in a piecemeal, last-minute fashion.

“We urge the Minister of State with responsibility for insurance, Seán 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."

The alliance said the response needed to be initiated in this financial year and further developed through the 2023 budget.

Sectors, sub-sectors and groups of individuals identified by the alliance as struggling to get cover at all or reduced to one underwriter option include:

• Adventure centres that deal with children; 
• Aqua parks; 
• Artists, arts workers and arts organisations 
• Bike hire shops on greenways and elsewhere; 
• Bouncy castle operators; 
• Caravan and camping parks; 
• Car rental; 
• Charities — disability services, childcare, children, domestic violence, environmental; 
• Childcare providers; 
• Childminders 
• Children’s play centres; 
• Children’s playgrounds (non-local authority); 
• Circuses (both community and commercial); 
• Climbing walls;
• Coasteering; 
• Drivers of older cars; 
• Education; 
• Equestrian sports; 
• Festivals and events; 
• High ropes centres; 
• Homecare providers; 
• Hotels; 
• Ice skating; 
• Incoming tour operators; 
• Independent marts; 
• Karting tracks; 
• Late-night venues; 
• Minority sports; 
• Mountain biking; 
• Nursing homes; 
• Outdoor adventure centres; 
• Private scheduled buses and coach hire; 
• Public houses; 
• Repair cafes; 
• Road haulage; 
• Street artists; 
• Taxis; 
• Thatched buildings (both privately owned and commercially operated); 
• Tourism — accommodation providers; 
• Tourist train operators; 
• Trampoline centres; 
• Travel agents; 
• Tyre depots; 
• Vehicle recovery operations; 
• Young drivers.