asked the Minister for Industry, Trade, Commerce and Tourism if he plans to undertake a review of procedures in relation to the licensing of insurance companies.
Ceisteanna — Questions. Oral Answers. - Licensing of Insurance Companies.
9.
Procedures for the authorisation of assurance undertakings were revised on implementation of the EC First Non-Life and Life Directives into Irish law in 1976 and 1984 respectively.
The standard requirements for authorisation are based to a large extent on criteria specified in those directives, which provide for a common approach by the different member states to the taking-up and carrying on of the business of insurance. As the Irish Supervisory Authority for insurance, I am satisfied that the existing requirements are adequate for the proper conduct of insurance activities and, therefore, I have no plans for a fundamental review of procedures in this area.
I am very disappointed with the Minister's reply. Is the Minister aware that insurance companies in recent times have been failing to live up to their responsibilities? They are refusing to take employer liability insurance, public liability insurance and even refusing to insure motor cyclists. There is only one company prepared to insure motor cyclists. Surely the Minister is aware that there are grave losses because of the failure of the insurance companies to live up to their responsibilities. At the same time, their sister companies are amassing huge profits in the life assurance business. I would ask the Minister to reconsider his position and call in the insurance companies. Is he considering the possibility of allowing continental European companies into the Irish insurance market in view of the failure of the companies already here to live up to their responsibilities.?
That seems to be a separate question.
Generally, I am bound by the procedures set down in the EC First Non-Life and Life Directives in regard to the authorisation of insurance undertakings, so I have no plans for a fundamental review of procedures in this area. The Deputy will be aware that an Insurance Bill is in the course of preparation which will give me greater supervisory functions. I am aware that in certain liability areas different firms have difficulties in getting insurance. In relation to motor insurance, we have a declined cases committee and in the case of other liability insurance we have an informal agreement in the insurance industry. However, as a Minister I cannot force any company to take on a risk, and I have stated this quite clearly in the House. I have stated clearly here also that my primary responsibility as a supervisory authority for insurance is to see whether companies meet their statutory solvency and reserving requirements. That remains my position.
In relation to the opening up of the country to foreign insurers, this matter is being considered under the Non-Life Services Directive which is in draft from and is under consideration in Europe at the moment. It is also bound up with a major law case. Therefore, the question of freedom of services of insurance may be taking on a higher profile in the not too distant future. Until then I will administer the law as it is before me.
It is now 3.30 p.m. and I must take up the questions nominated for priority. Ceist 31.
We did not make much progress today.
We have been wasting time——
I have one supplementary. I have not been wasting time. I have been waiting patiently for my question and I do not get a chance now to ask another supplementary.
That is not my fault.
Can I ask another supplementary?
You cannot Deputy. I am sorry. That is one thing the Chair can control and he intends to control it.
We did not make much progress today.
It was not my fault.
Not altogether.
Not at all.