Aviva Insurance Ireland, a unit of UK insurance major Aviva, is set to expand its coverage for the hospitality industry in the country.
The action comes after the introduction of several government reforms in the sector.
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These changes include the implementation of judge-approved personal injury award guidelines, which lowered awards for minor injuries; the expanded role of the Injuries Resolution Board (IRB); and duty-of-care reforms to adjust the responsibilities between property owners and visitors.
As part of its expansion, the insurer will enhance its liability coverage in the sector, targeting restaurants, pubs and certain hotels.
Citing brokers, the Irish Times reported that this move is expected to enhance competition in coverage within a sector that currently experiences fragmented attention from domestic insurance companies.
A significant portion of the coverage is offered by international entities such as Lloyd’s of London market participants, which primarily offer capacity through managing general agents.
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By GlobalDataAviva was said to be the market leader in this area until it exited over a decade ago due to rising injury claims and costs.
Currently, AXA and AIG cover small cafes and restaurants, FBD focuses on pubs and restaurants and Allianz covers certain parts of the sector, according to brokers.
Aviva managing director of commercial lines in Ireland Brian Mahon, as reported by RTE, said: “We believe that government has done sufficient reform to allow us to widen our appetite, despite more work needed in reducing record plaintiff legal fees and very low plaintiff acceptance rates in the IRB.
“This amendment, together with the reduced award sizes for personal injury claims brought about by the introduction of the Personal Injuries Guidelines, mean that we now have a more positive environment in which to write liability business in Ireland and are in a position to widen our risk appetite in this area.”
In July, Aviva partnered with Symfos to improve its exposure management with the help of the latter’s Orchestra software.
