Thursday, 12 February 2004

Questions (114)

Finian McGrath

Question:

110 Mr. F. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding insurance legislation in regard to home insurance and damage by river floods. [4486/04]

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Written answers (Question to Minister for Enterprise)

I no longer have a legislative function in insurance matters.

The Irish Financial Services Regulatory Authority has responsibility for the regulation and supervision of insurance undertakings since 1 May 2003. The particular issue raised by the Deputy may be of interest to the consumer director of IFSRA and I will draw her attention to it.

While I still retain responsibility for the insurance reform programme my concern is in improving the functioning of the Irish insurance market and reducing the overall cost of insurance to consumers and business. The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents Governments from intervening directly in relation to premium levels or the risks that insurers are prepared to underwrite.