Minister describes reports of childcare insurance premiums trebling next year as 'very worrying'

The Children's Minister Katherine Zappone has described as “very worrying” reports of childcare insurance premiums trebling next year.

Children's Minister Katherine Zappone has described as “very worrying” reports of childcare insurance premiums trebling next year.

Speaking in Dublin, Ms Zappone said she is willing to consider an emergency fund should it be required to allow childcare operators to remain open in the New Year.

The minister was speaking after the Irish Examiner revealed yesterday that hundreds of childcare operators face having to close their doors or operate without insurance in January after the withdrawal of one of two insurance companies.

She said: “It's very worrying that there's only one insurer at the moment in the market. And we hope that that will change.

“I'm sure we're all very aware of the fact that, on Friday, many of the people who are the providers who are receiving insurance received a letter from their broker, Padraig Smith and company to say that the insurance company that was providing the insurance is no longer going to be providing that.

"My understanding is that he is currently in discussions, looking for another provider to replace the one who's left,” she added.

Asked about one case of a provider whose insurance quote for 2020 has trebled from €3,000 to €9,000, Ms Zappone appeared shocked at that, saying such increases were “news to me”.

“Well, that's, that's a huge increase, you know, and that's news to me, that's very serious. And, obviously, we can't control the cost of insurance,” she added.

“But to go from €3000 to €9000 is massively significant. And, you know, that's information that needs to be fed into that review process. We need to seriously look at whatever recommendations are coming out of that if they're sufficient.

“What I can say is, really up until the last couple of weeks, we weren't receiving very many, I suppose contacts, from providers about concern around insurance costs. We weren't. I understand that so now we are aware of that,” she added.

Ms Zappone said the issue of insurance is wider than the childcare sector and that there is a group that is investigating that. But she said the proposal of a referendum to limit court awards is “under discussion".

Asked if the Government would consider establishing an emergency fund, she said: “We will consider everything.”

She did say that no discussions with Finance Minister Paschal Donohoe about such an emergency fund have taken place.

“No, I have not. Only in the last number of days has it come to this sector so no,” she said.

She was speaking at the launch of the Annual Early Years Sector Profile report into the numbers of children accessing early childhood education.