Aviva Insurance Ireland is set to broaden its liability coverage in the hospitality industry, influenced by the government’s recent series of reforms to the sector, especially those addressing the issue of slips, falls, and trips that were initiated in the previous year. The UK-based insurance firm intends to focus on pubs, restaurants, and specific hotel establishments.
Experts in insurance brokerage anticipate this development to crucially stimulate competition in the coverage within a sector regularly characterised by decentralised segments of focus from domestic insurance corporations. It was highlighted that dominant coverage is usually contributed by foreign entities like participants in the Lloyd’s of London market, mostly supplying capacity via managing general agents (MGAs).
Aviva was previously a market leader in this domain before they retreated over ten years ago due to a loss accrued from a rise in injury claims and expenses. Axa and AIG have been active in small cafes and restaurants sector, while FBD targets pubs and restaurants, say the brokers. They also notify that Allianz caters to certain sections of the industry.
The insurance brokers estimate the size of the wider hospitality market, measured in yearly gross written premiums, to be within the range of €100 million to €150 million.
Aviva has stated that their increased willingness to supply insurance coverage to specific businesses in the hospitality sector has been a direct consequence of the government’s insurance reform measures. The measures, which aimed to alleviate the cost pressure on businesses, comprise: set of judge-approved guidelines for personal injury awards introduced three years ago which significantly decreased minor injury awards; the increased responsibility of the Injuries Resolution Board (previously the Personal Injuries Assessment Board); and reforms to duty-of-care which moderated the responsibilities of property owners and visitors.
Brian Mahon, Aviva’s managing director of commercial lines, commented, “We are delighted to provide additional insurance offerings to businesses in the hospitality industry. We have confidence that the government has instated adequate reforms that enable us to widen our approach, despite the necessity for further efforts in reducing high plaintiff legal fees and record-low plaintiff acceptance rates in the IRB.”