Cover Story
Enough is Enough IHF MEMBERS ARE SEEING THEIR INSURANCE COSTS RISE BY 28% YEAR ON YEAR. AS THE GOVERNMENT CONTINUES TO ‘FOOT DRAG’ ON THE ISSUE, HOTEL & CATERING REVIEW SPEAKS TO IHF PRESIDENT MICHAEL LENNON ABOUT GOVERNMENT INACTION AND THE KNOCK-ON EFFECTS ON THE INDUSTRY
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escribed as an ‘emergency’ by a government minister and an unsustainable situation by industry representatives, it looks like the insurance crisis has finally reached boiling point. New research from the Irish Hotels Federation (IHF) has revealed that 62% of its members have seen insurance hikes over the past 12 months. Out of these, the average increase in premiums was 28% year on year. Over 90% of hotels and guesthouses have expressed their concern over these hikes and the impact they’re having on their business. So what’s behind these hikes and why are insurance companies getting away with charging extortionate rates? Sinn Féin’s Pearse Doherty has accused insurers of ‘gouging’ customers, with reports of profits at insurance firms increasing by 1,300% in one year. Michael D’Arcy, Minister of State at the Department of Finance, has publicly stated that he doesn’t trust the insurance industry or hold them in high regard. He has described the situation as an ‘emergency’, pointing to government moves to legislate for a judicial council as a possible solution to the crisis. IHF President Michael Lennon lays the blame squarely at the government’s door, calling out a government policy that fails to support Irish business. “We believe they’ve taken their eye off the ball and we’re calling for urgent action to be taken. The majority of our members that we surveyed have seen substantial hikes over the past number of years, particularly last year. A large number are paying over €100,000 in insurance. The government is involved in a ‘foot dragging’ exercise and for the sake of our tourism industry, it has to end.” All hotels are being affected by these insurance hikes, says Michael. Our ‘compo culture’ is partly to blame, that eagerness to call a solicitor if you
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HOTEL
CATERING REVIEW | ISSUE 6 2019
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