Insurance Industry

Dáil Éireann Debate, Tuesday - 30 November 2010

Tuesday, 30 November 2010

Questions (126)

Seymour Crawford

Question:

131 Deputy Seymour Crawford asked the Minister for Finance the discussions he has had with the Financial Regulator regarding the opening of the Northern Ireland business market for Quinn Insurance; the reason the Quinn Group itself cannot be covered by Quinn Insurance for its own companies north of the Border as there has been an exemption granted for the credit unions; his views that this ongoing failure to open up the market is creating increased costs and putting jobs at risk; and if he will make a statement on the matter. [45324/10]

Written answers

Minister for Finance (Deputy Brian Lenihan)

The decision regarding the recommencement of commercial insurance in the UK and Northern Ireland by Quinn Insurance Ltd (QIL) is a matter for the Central Bank of Ireland in respect of which it is independent in the performance of its functions.

I have been informed by the Central Bank that it gave serious consideration to this issue including a detailed review of proposals by the administrators of QIL to recommence writing commercial insurance in the UK and Northern Ireland. However, it determined that QIL would require additional capital in order to recommence writing such business which is currently unavailable to the company. The Central Bank has indicated that should the company obtain sufficient capital and return to required solvency levels in the future, this decision will be reviewed. The Deputy should note that this decision does not affect QIL's settlement of claims on extant UK and Northern Ireland commercial business.