Dáil Éireann debate -
Tuesday, 8 Apr 2003

Vol. 564 No. 5

Written Answers - Health Insurance.

Conor Lenihan

Question:

248 Mr. C. Lenihan asked the Minister for Health and Children his views on the desirability of health insurance being regulated by the single financial services regulator; his plans to bring this about; and if he will make a statement on the matter. [9635/03]

Minister for Health and Children (Mr. Martin)

Under the Health Insurance Acts 1994 and 2001, health insurance is specifically regulated in the context of safeguarding and sustaining established common good principles of the system, community rating, open enrolment and lifetime cover. The legislation also includes provision for risk equalisation which is necessary to support community rating.

The Health Insurance Authority was established in February 2001. It has key functions under the Acts in relation to proposed risk equalisation arrangements; registration of health insurers; monitoring of health insurance business and developments; and advising the Minister on his functions under the health insurance Acts, its own functions, and health insurance generally. The legislation also provides for the Minister to assign additional functions to the authority.

The prudential regulation of health insurance undertakings is subject to the EU Council directives on the regulation of non-life insurance. Pursuant to the directives, VHI is exempt from the authorisation requirements therein for the purposes of conducting business here. BUPA Ireland, which operates here as a branch of the British United Provident Association, is regulated by the relevant UK authorities on the principle of home State regulation under the common EU passport in non life insurance.

In light of the above, there are no plans for the regulation of the existing health insurers by the single financial services regulator.