asked the Minister for Industry and Commerce the names of new companies which have recently been licensed to transact motor insurance business in this country; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
12.
The following companies which are incorporated and supervised as head office companies in Ireland have been authorised to conduct motor insurance business since May, 1976, when the first EEC Non-Life Insurance Co-ordination Directive came into effect:
American International Insurance Company of Ireland Limited;
Church and General Insurance Company Limited;
Irish Public Bodies Mutual Insurances Limited;
Universal Insurance Company Limited (engaged in export business only).
Apart from the above companies the following branches of insurance companies with their head offices in other EEC member states have been authorised to conduct motor insurance business since May, 1976:
Assicurazioni Generali S.p.A. (Italy);
Compagnie d'Assurances Orbis S.A. (Belgium);
Prudential Assurance Company Limited (United Kingdom).
It is expected that the entry of these companies on the motor insurance market will lead, in due course, to increased competition for this class of business.
Are any of the companies presently operating in breach of the EEC regulations? Their policy is that each company quotes the same terms. Is this being investigated by the Department?
If the Deputy wishes to ask a question in relation to the practices of particular companies and their compatibility with EEC regulations, that is a separate question. The question posed by Deputy Daly is solely in relation to the new companies entering the market.
What investigations were carried out into the companies before the licences were issued?
The Department have to satisfy themselves as to the general solvency and suitability of each of these companies before licences are issued. In the case of companies who have their offices in other EEC countries there is an exchange of information between the supervisory authority here and the supervisory authority in the country where the head office is.
To what extent are these companies transacting business here?
In respect of motor insurance, two companies, the Church and General and the Irish Public Bodies Mutual Insurance Company, have exercised their right to undertake motor business under this provision. I have no information to the effect that the other companies are particularly active in the motor insurance business yet, but they may become so as time passes.
My supplementary was prompted by the Parliamentary Secretary's reply when he said that this will lead in due course to increased competition. In view of the fact that premiums quoted by these companies are all the same would this be in breach of EEC regulations or would the other new companies coming into the market be obliged to conform to the standards set by the companies already in existence?
It is not true that premiums quoted by all companies are exactly the same. Anybody experienced in looking for motor insurance would agree. I suggest that the Deputy put down a question on the matter and it will be gone into. There are arrangements to ensure that people who fail to get the cover or who get a quotation for cover which is tantamount to a refusal, can have redress to the Undesirable Risks Committee.
That is not a satisfactory scheme.
The agreement referred to is being renegotiated at the moment to see if it can be improved.