asked the Minister for Industry, Trade, Commerce and Tourism the steps he has taken as a supervisory authority to improve the monitoring of insurance generally; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Monitoring of Insurance Agencies.
18.
As the practice of insurance — whether in the local marketplace or in the wider international markets — evolves and develops, so also must the function of supervision.
I would point to several changes in monitoring procedures implemented over the past ten years. Many of these have resulted from EC Directives — for example, more detailed annual returns to ensure compliance with harmonised solvency requirements. Others, such as restrictions on the admissibility of particular assets for technically reserve purposes, have derived from the perceived needs of my Department as supervisor. Those improved procedures are already in place for non-life companies and are in the process of development for life undertakings.
Additionally, the application of sophisticated statistical techniques through consultancy exercises has enhanced my Department's ability to exercise their functions in this area. In the recent debate on the Insurance (Miscellaneous Provisions) Bill, I referred to my Department's need for in-house actuarial expertise and I am at present addressing this issue. To date I have initiated a programme for the computerisation of the supervisory function and this new facility will play an important role in the practical exercise of insurance supervision in the future. I am also, of course, concerned that the primary responsibilities of directors and managers of insurance companies and the duties of auditors should be properly exercised. Legislation to meet these concerns will be expedited.
I am glad, at least, that the Minister has taken some of the recommendations which I made on 28 March to heart.
"Addressing this issue" is a good one. Did he employ an actuary?
I put the Minister on notice long before the last debacle took place and he did not do anything about it.
The Deputy was the Minister in charge of the matter.
The Minister is running away from the crisis again. He had been preaching, both inside and outside the House, about introducing legislation to govern intermediaries. Is the Minister aware that even in the last two weeks two brokers have gone bust here, with considerable liability? Will he finally tell the House when he will introduce legislation to control the actions of intermediaries, namely, brokers?
He is addressing the issue.
I am surprised that the Deputy has asked that question. He should know from his own experience as Minister that I do not have responsibility for supervising intermediaries. I intend to bring in some aspects of supervision for intermediaries. This will be part of an Insurance Bill which I would expect to be published in the next session of the House.
Would the Minister indicate to the House the number of persons — civil servants and others — who are actively employed in his Department dealing with insurance matters? Will he confirm or deny what a union representative stated in the recent past: that the total workforce controlling the whole insurance industry, life and non-life, amounts to five individuals? Yes or no?
A total of 22 officials are currently employed in the insurance division of the Department.
One final question. The Minister says he is now pursuing the question of the appointment of actuarial staff. Will he give the House an undertaking that, apart from actuarial staff who would normally be concerned with life arrangements anyway, he will appoint people who have underwriting experience in the field of assessment and risk in connection with liability business, as against purely actuarial experience?
A number of issues have been raised by the Deputy, and quite rightly so. First, in relation to my supervisory powers, my Department are not responsible for the management, accounting or auditing functions of insurance companies. There is a grave responsibility on those who are engaged in the industry, especially the auditors, to ensure that the figures submitted to my Department are examined fully. My Department examine in very close detail the returns made to them. Where necessary, we bring in consultants in respect of any aspects of a company's returns which we feel need to be examined further. Minister Bruton made reference to the need to strengthen the staffing in the insurance division. I would concur with him that there is a need for strengthening in order to ensure that the supervisory functions of the Department under the European Community's Non-life Insurance Regulations of 1976 and European Community's Life Assurance Regulations of 1984 are complied with. We are becoming more complex in our administration of the insurance industry and continue to need, on a year in year out basis, to reassess the Department's needs in this area. A submission has been made by the Minister in this matter and I would hope that we would strengthen our insurance division.
I am satisfied that the division staff carry out their duties to a high level of professionalism and, where necessary, we buy in consultancies to examine any queries we may have in respect of aspects of companies' returns. We are quite satisfied that we are capable of carrying out these examinations, where necessary.
That concludes Question Time.
One final supplementary.
The time is up, Deputy. I am sorry. Do not get alarmed, the 15 minutes are up.
I was going to ask one final supplementary.
Written replies will be given to questions which have not been reached unless a Member wishes to have a question put down again for oral answer. If so, he or she should inform the General Office before 4 p.m. today. There is no reason why we could not have covered all the questions today, but we did not.