Brexit Has Led To Serious Shortage Of Insurance Capacity
McCarthy Insurance Group is the largest, 100% Irish-owned insurance brokerage in Ireland. Executive director Paul Kavanagh notes that Brexit has had a huge impact on insurance costs and capacity for businesses, clubs and all types of voluntary organisations.
“London and Gibraltar were the ‘go-to place’ for many niche and difficult-to-place risks,” Kavanagh explains. “The insurers in London and Gibraltar believed that a deal would give them full access to the EU. This did not happen and, to add insult to injury, no accommodation was made for these insurers to continue trading here.”
As a result, Kavanagh adds, many of these insurers decided not to take on the difficulty and expense of being regulated by an EU country. A few have become regulated in Ireland or another EU member state, but many others still decline to trade in Ireland.
This has led to a serious shortage of capacity for the leisure, activity and hospitality sectors, as well as commercial property and professional indemnity cover, says Kavanagh. “Previously we could get one Insurer to cover a €100m commercial property portfolio. Now we can need up to eight insurers to share the risk, if they can be found.”
Kavanagh is hopeful that more London insurers will return to the Irish market, though they will wait to see how the new personal injuries regime work out. Legislation to amend the Occupiers Liability Act and afford legal status to disclaimers signed in activity centres would also help, Kavanagh suggests.
Brendan Harrington, formerly financial director, is MIG’s new CEO. The company is expanding and recruiting, though Kavanagh says there is a shortage of qualified staff available to hire.