Thursday, 7 February 2019

Questions (75)

Michael McGrath

Question:

75. Deputy Michael McGrath asked the Minister for Finance the number of insurance companies operating here under freedom of services which are prudentially regulated in the UK or Gibraltar by the type of insurance sold and the number of applications with the Central Bank from insurance companies wishing to be prudentially regulated here, respectively; and if he will make a statement on the matter. [6178/19]

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Written answers (Question to Finance)

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. The day to day supervision of insurance undertakings is a matter for the Central Bank of Ireland, and so I have consulted with it in respect of the information sought.

With regard to non-life insurance, I am informed by the Central Bank that as at 31 December 2017 (the most recent data they have), that there were 216 non-life insurance firms authorised to provide services in Ireland on a Freedom of Services (FOS) basis under the EU Solvency II framework from the United Kingdom and Gibraltar. I have been advised however that only 58 of these firms actually operate in Ireland. Of these, 48 were authorised in the United Kingdom and 10 were authorised in Gibraltar.

The types of non-life insurance written by UK firms included Motor, General Liability, Fire & Other property, Medical Expenses, Marine & Aviation, Credit & Suretyship, Miscellaneous Financial Loss, Income protection, Property, Assistance, Legal Expenses, Workers Compensation (Employer Liability), and Casualty. For Gibraltar firms, the types of business written are Motor, Miscellaneous Financial Loss, General Liability, Credit & Suretyship, Legal Expenses, Assistance, Fire & Other property, and Casualty insurance. In this regard, I understand that 87% of gross written premium written by UK firms was in respect of motor insurance, fire & other property insurance and general liability insurance, while 91% of the premium written by Gibraltar firms was in respect of motor insurance.

With regard to life insurance, I am informed by the Central Bank of Ireland that as at 31 December 2017, that there were 51 life insurance firms authorised or registered to provide services in Ireland on a Freedom of Services (FOS) basis under the EU Solvency II framework from the United Kingdom and Gibraltar. However, I understand that only 11 of them actually operate in Ireland, all of which are authorised in the United Kingdom.

Finally, the Central Bank has indicated that they are unable to comment on the number of applications from insurers wishing to be prudentially regulated here, however they have confirmed that they are continuing to review a number of such applications at this time.