Insurance costs trebling for childcare providers

Galway Daily news Budget 2022: Childcare providers say not enough done to address costs

The insurance crisis has seen costs for many childcare providers triple according to Independent Galway-Roscommon TD Denis Naughten.

He said that the difficulty many in the industry are facing, is that Allianz are the only ones still providing insurance coverage for childcare services after Ironshore exited the market.

This has affected up to 1,300 childcare providers whose policies are now set to expire on December 31 with an uncertain future facing them.

Children’s Minister Katherine Zappone has said that her department has authorised one off payments of €1,500 to providers in response to the sharp increase in costs.

“While quotes are being processed within 24 hours in the vast majority of cases, the cost is significantly higher than was the case in the previous year,” Denis Naughten said.

He added that “869 of the 1300 providers impacted by Ironshore have been given quotes by 18 December. The balance can be processed within a short time frame.”

“Many of the providers that I have been in contact with are facing a trebling in the cost of insurance. This is causing a lot of stress and anxiety for childcare providers and as a result parents as well.”

“This is on top of the stress involved in submitting re-registration applications,” Deputy Naughten said.

He welcomed the move by Minister Zappone, saying that he has met with the Minister to discuss staff retention and pay as well as the issues tat arise from administering regulations.

“Minister Zappone has committed to pursuing these matters with her officials and I expect an update on the progress about these issues, early in the New Year.”