Underwriting losses have been a feature of motor insurance business for many years. However, these losses are offset by investment returns on the financial reserves required to be held to meet outstanding claims.
In common with the trend in other European markets, there is an increasing amount of personal lines insurance business being written here through lower cost distribution channels such as telemarketing. Increased competition, coupled with new technology, contribute to lower insurance costs for consumers.
To protect policyholders, insurance legislation requires all insurance companies with their head office in Ireland to meet solvency requirements and submit annual financial returns to my Department. The latest statutory returns submitted to my Department demonstrate compliance with the solvency requirements by all such companies currently writing insurance business in Ireland.