asked the Minister for Finance if he will ensure that the Irish Life Assurance Company will insure their new buildings with an Irish insurance company.
Ceisteanna—Questions. Oral Answers. - Life Assurance Company.
1.
Under the Insurance Act, 1936, insurance business may be placed only with an insurer licensed by the Minister for Industry and Commerce to transact such business in the State.
I have been informed by Irish Life that in accordance with accepted practices in the insurance industry they insure with several firms. All such business is renewable annually on the basis of competitive tender and no change in this procedure is envisaged.
Is it not a fact that this year for the first time the fire insurance of Irish Life on their buildings throughout the country has been moved from an Irish insurance company as distinct from a company operating here? Does the Minister not consider it rather peculiar for the Irish Life Assurance Company to place their general insurance with a company other than an Irish company, including one in which the Minister has a rather large holding?
I think it would be most undesirable if there should be any addition to a great deal of the harmful criticism of the Irish Life Assurance Company. This is a company of which all Ireland can be proud because of the manner in which they have injected a very distinctive Irish element into the whole insurance business. In common with other insurance companies, Irish Life are engaged in reinsurance and in that process they carry on business with about ten other companies. Irish Life are also engaged in reinsuring on behalf of other companies including many British companies that are very happy to reinsure with Irish Life. The Irish Life Assurance Company have a significant part of the insurance market and, therefore, it would be wrong for anyone to develop an element of chauvinism in relation to the operations of Irish Life which could be injurious to the best interests of the company, the policy holders and the business of the firm at home and abroad. I am sure the Deputy realises the significance and importance of what I say and that he would not wish to be a party to any criticism that would suggest that Irish Life are not very anxious to place as much business as they can in Ireland. This is their commitment and it is one I am satisfied from my inquiries they honour to the very best extent.
Arising from the Minister's sermon, is it not a fact that this year for the first time the fire insurance of the various properties of Irish Life were taken from an Irish insurance company as distinct from an English company operating here? Nobody is anxious to damage the Irish Life Assurance Company but at this time and in view of what the Minister said yesterday about goods and services being used within the country, surely the company have a responsibility to place their business on the home market? I am leaving aside reinsurance because that is a separate matter. Surely the company have a responsibility to place their fire insurance with an Irish-owned and Irish-operated insurance company?
There has been no change in the practice of placing insurence and reinsurance on the basis of competitive tender. The Deputy and the country may be assured that there would be a natural inclination on the part of Irish Life to place their insurance with another company in which they might possibly have a substantial shareholding. As there has been no difference in the insurance practices of Irish Life, and as it is not the practice to disclose in this House the names of individual firms who receive business from companies, I consider it would not be proper for me to give any further details of the ordinary operations of the Irish Life Assurance Company.
The fact is the company moved their insurance from an Irish office.
I am calling Question No. 2.