At the outset I would like to say that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation, and have no role in the day to day supervision of insurance companies. I have therefore consulted with the Central Bank on the matters raised by the Deputy.
The Central Bank has informed me that, as at 6 December 2018, 175 life insurance undertakings and 876 non-life insurance undertakings are notified to operate in Ireland on freedom of services basis. The Solvency II Directive, which entered into force 1 January 2016 sets out new, more comprehensive EU-wide requirements on capital adequacy and risk management for insurers with the key aim of increasing policyholder protection. All insurance undertakings across the European Union must comply with the requirements of the Directive (with certain limited exceptions). However, Solvency II does not apply to intermediaries or managing general agents who are authorised and supervised under the European Communities (Insurance Distribution) Regulations 2018, which transpose the Insurance Distribution Directive.
Where an insurer, or insurance intermediary authorised in another Member State operates in Ireland through a branch or under the freedom to provide services ("passporting"), prudential supervision is the responsibility of the supervisory authority of the Member State which authorised the insurer. However, where such an insurer or insurance intermediary offers its products to Irish consumers, it is subject to the consumer protection regulatory framework in Ireland.
In relation to the question of the number of insurers operating on a freedom of service basis who have at one time not met their solvency requirements, the Central Bank has indicated that in accordance with Section 33AK of the Central Bank Acts, it is prohibited from sharing information about individual regulatory relationships. Therefore I am not in a position to provide this information to the Deputy. However, the Central Bank has advised me that they actively engage with EIOPA and other national supervisory authorities in accordance with the Solvency II Directive.
Furthermore, in 2017, EIOPA (the pan-European authority with responsibility for oversight of the insurance industry) developed a cross-border platform of cooperation between National Supervisory Authorities. This platform provides all National Supervisory Authorities with the opportunity to discuss concerns in relation to specific undertakings, local markets and share general market developments. The Central Bank has advised me that they participate fully in the platform with other relevant supervisory authorities.
