Billy Kelleher
Question:340 Deputy Billy Kelleher asked the Minister for Health and Children his plans to sell the Government stake in VHI. [8632/11]
View answerTuesday, 19 April 2011
Questions (319, 320, 321, 322)
Billy Kelleher
Question:341 Deputy Billy Kelleher asked the Minister for Health and Children if he will implement the recommendations of the Milliman report; if he has met with VHI to ask it to reduce its costs; and if he will make a statement on the matter. [8633/11]
View answerBilly Kelleher
Question:342 Deputy Billy Kelleher asked the Minister for Health and Children if he will ensure that the VHI will meet its solvency requirements as set out by the regulator; and if he will make a statement on the matter. [8634/11]
View answerBilly Kelleher
Question:343 Deputy Billy Kelleher asked the Minister for Health and Children if he has raised the issue of the VHI’s solvency requirements with his colleagues in the EU; and if he will make a statement on the matter. [8635/11]
View answerWritten answers
I propose to take Questions Nos. 340 to 343, inclusive, together.
The VHI continues to be exempt from prudential solvency requirements arising from a derogation under the 3rd Non-Life Directive. The Voluntary Health Insurance (Amendment) Act 2008 provided for the VHI to acquire sufficient funding in terms of its capital reserves to enable it to make an application to the Financial Regulator for authorisation. The date by which the VHI must accrue the necessary reserves is set at 1 January 2012. Officials from my Department are maintaining regular contact with the European Commission to update them on progress regarding the implementation of plans for the insurance market and the VHI, including solvency issues. The most recent meeting took place on 9 February 2011 in Brussels and further written communications have since been exchanged.
The programme for Government provides for the VHI to remain in State ownership. I am considering the future structure of the company in the context of an examination of the balance of risk among insurers in the market. Expert financial and legal advisors will be commencing work on this shortly.
I met with the Chairman and CEO of the VHI on my appointment in March 2011. At that meeting, I expressed my concerns with regard to VHI's significant claims costs, much of which were outlined in the Milliman review of VHI's claims. My Department is working closely with the VHI on this issue. In that regard, I note VHI's recently announced financial outturn for 2010, which shows a significant improvement over the 2009 outturn. While much remains to be done for the VHI to achieve sustainability, a continued focus on the control of costs will be of considerable assistance to the company.