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Dáil Éireann díospóireacht -
Tuesday, 13 Jun 2000

Vol. 521 No. 1

Written Answers. - Insurance Bill, 1999.

Michael Noonan

Ceist:

36 Mr. Noonan asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has to make changes to the Insurance Bill, 1999 as a result of the submissions she has received from private insurance brokers; and if she will make a statement on the matter. [16545/00]

I have received submissions from a number of interested individuals, representative groups and institutions about the Insurance Bill, 1999, including submissions from private insurance brokers and their representative bodies. Many of the submissions seek technical rather than substantive amendments.

All the submissions are being considered in our Department at present. I expect to propose some amendments to the present text of the Bill when the Committee Stage of the Bill is taken.

I remain convinced that the objectives of the Bill are sound. In particular, I am committed to the provisions concerning disclosure, including disclosure of commission. There are good reasons for compulsory disclosure of commission levels to consumers. In general, disclosure enables consumers to make an informed and rational choice of products available, thus leading to enhanced competition to the benefit of the consumer. Disclosure of commission should therefore exercise a downward pressure on the levels of commission. It should also minimise the scope for mis-selling, including churning of policies. Moreover, disclosure of commission is becoming the norm throughout the financial services sector. Under the Investment Intermediaries Act disclosure of commission is required.

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