Opposition say Leo 'swallowing industry spin' as one of two childcare insurers pull out of market

The Taoiseach has been accused of "swallowing industry spin" after claiming there is nothing the Government can do to make a childcare insurer stay in the Irish market.

The Dáil has heard that many creches and childcare providers will be forced to close from January after one of only two insurers pulled out, which has resulted in a 300% spike in quotes.

Ironshore Europe announced that it is quitting the Irish market, leaving many of the country's 4,400 childcare providers in a precarious position.

Leo Varadkar has also been criticised on rising motor insurance cost with Fianna Fáil leader Micheál Martin accusing the Government of "weakness" and "paralysis" and saying it had failed to protect people from "a greedy and exploitative industry".

Raising the fact that many creches may not be able to open in the New Year, Sinn Féin Dáil deputy leader Pearse Doherty said there has been "absolutely no action" from either Finance Minister Paschal Donohoe or Children's Minister Katherine Zappone on the issue.

"I am begging the Taoiseach on behalf of not only the childcare sector, soft play areas or motorists, but many other sectors which will be affected by this in the new year. There needs to be Cabinet decisions on this. The Government needs to stop swallowing the industry's spin," he told the Dáil.

Mr Doherty raised the case of a childcare provider who has received a quote from the one remaining insurer in the market which would see the amount paid next year jump from €1,800 to €5,000.

"That provider simply does not have the money and does not know what to do when the doors close on Friday," he said.

Where does that provider find the money? What happens to the 80 children to whom care is provided by that organisation?

Mr Varadkar accepted that many parents are worried that their childcare costs will go up in the new year or their crèche may close.

"The recent announcement of the withdrawal from the market by one of the insurers providing insurance to childcare providers is a worrying development," he said.

But he added that the Government cannot compel insurance companies to stay in the Irish market.

"Consequently, we need to ensure the insurance market is attractive for such insurers in order to generate greater competition, as well as improve overall current capacity and pricing position," he told the Dáil.

Mr Martin said a Central Bank report published this week on private motor insurance revealed a "shocking story of continuous rip-off of the people of Ireland" by the insurance industry.

"At times, the Government seemed to side with the industry and accept its explanations," said Mr Martin, pointing to the fact that between 2009 and 2018 the average cost of claims fell by 2.5%, while average premiums jumped by 42%.

"It is even more alarming that in the past five years, 2013 to 2018, average premiums went up 62%. Meanwhile, the industry generated an average operating profit of 9%, twice that of the level of profitability seen in the United Kingdom."

Mr Varadkar said he has "never been soft" on the insurance industry and efforts are being made to bring down insurance costs, including motor insurance for drivers, as well as employer liability and public liability for businesses.