Dáil Éireann Debate, Wednesday - 14 January 2015
141. Deputy Joe Carey asked the Minister for Finance the conditions a company must adhere to in order to enter the home insurance market and the legislation which underpins these conditions; and if he will make a statement on the matter. [49625/14]
View answerThe Insurance Acts and Regulations require an undertaking to hold an authorisation if they wish to carry on insurance business, i.e. to operate as an underwriter rather than a distributor.
An authorisation is required for all classes of insurance business, including the provision of home insurance. Article 6 (1) of the European Communities (Non- Life Insurance) Framework Regulations 1994 require that an insurance undertaking shall not carry on the business of non-life insurance unless it is the holder of an authorisation. Articles 6, 7 & 9 set out the requirements of authorisation of non-life insurance undertakings.
In addition, Insurance Undertakings are obliged to comply with the provisions of the Consumer Protection Code and the Minimum Competency Code. The Consumer Protection Code applies to these firms by virtue of them falling within the definition of a 'regulated entity' to which the Consumer Protection Code applies automatically upon their authorisation.
The Consumer Protection Code sets out the requirements and principles that all firms regulated by the Central Bank of Ireland must observe when providing financial products and services to consumers. The Minimum Competency Code outlines the level of competence required of individuals providing relevant financial services. It applies to individuals carrying out 'Pre-Approval Controlled Functions' and 'Controlled Functions' in regulated firms and they are required to comply with 'Continuing Professional Development' requirements on an ongoing basis. All accredited individuals are required to complete a number of hours of Continuing Professional Development each year in order to be compliant with the provisions of the Minimum Competency Code.
It is also possible for insurance companies which are authorised and regulated by the National Supervisor of another EU Member State to sell home insurance into the Irish market on either a Branch or Freedom of Services basis. All insurers with Irish consumers are required to comply with the Consumer Protection Code. This applies whether the insurer is prudentially regulated in Ireland, or if the insurer operates here on a freedom of services or a freedom of establishment basis. Similarly all insurers are required to comply with the Minimum Competency Requirements.
