Adrian Cummins of the RAI accused the government of "falling asleep" at the wheel

There are fears restaurants and cafes may now be faced with soaring premiums after business owners were notified that three leading insurers may not be offering renewals for 2020.

The Restaurants Association of Ireland was notified of the news by a broker on Wednesday.

It is understood AIG will not be offering quotes to coffee shops in the new year, AXIS Speciality Europe Ltd has ceased underwriting and may not offer new renewals and SureStone Insurance has withdrawn from the market.

Adrian Cummins, chief executive of the Restaurants Association of Ireland (RAI), notified members that this may have a big impact on the cost of insurance.

Speaking to Independent.ie, Mr Cummins accused the government of "falling asleep at the wheel" on the insurance crisis.

"The Competition Authority needs to start investigating this immediately," he said.

"The government has given us the excuse that it is doing everything in its power but they're pulling the wool over our eyes.

"There's no point telling business owners they've put in place a judicial council and that the problem is going to be sorted some time in the future, something needs to be done now.

"Thousands of businesses are being affected and at risk of closing. It was crèches this week and now it will be restaurants and bars in January."

Robert Troy, Fianna Fáil's spokesperson on business, said the hospitality sector is in "huge trouble."

"There are very few sectors of society that the insurance crisis hasn’t hit. Restaurants and cafes are now in the spotlight and the situation is appalling. The average premium was approximately €700 whereas the market is now quoting in the region of €2,000," he said.

"The government has promised to engage with the insurance industry over crèche concerns and they must do the same for the restaurants and cafes.

"The lack of a timeline for the Judicial Council committees is a huge problem. Businesses are closing now as the insurance crisis rages on. The RAI has written to their members to warn them that a number of insurers may not be offering 2020 renewals – there is no certainty for these businesses.

"Restaurants and cafes are the life blood of our towns and villages. Potential closures are going to result in huge job losses - this will on happen on the government’s watch," he concluded.

Online Editors