Dáil Éireann díospóireacht -
Wednesday, 13 Jun 2001

Vol. 538 No. 1

Written Answers. - Insurance Industry.

Bernard J. Durkan

Ceist:

126 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has assessed the success or otherwise of the insurance ombudsman with particular reference to improvement of services to the consumer; and if she will make a statement on the matter. [17468/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

The Deputy will be aware that the Government has agreed to pro posals for the establishment of a new structure for financial services regulation in Ireland. The proposals include the drawing up of legislation to provide inter alia for the establishment of a financial services Ombudsman.

It is envisaged that the current role of the Insurance Ombudsman of Ireland will be incorporated into that new Office. There will be further consultation and discussion between our Department and the Department of Finance on the best way to improve services to consumers in the financial services area, in the context of the establishment of a Financial Services Ombudsman. The new Irish financial services regulatory authority will itself have a strong consumer protection role and a separate statutory post of consumer protection director.

Bernard J. Durkan

Ceist:

127 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if new entrants to the insurance industry have actually increased competition with consequent benefit to the consumer; if she has measured the benefit in terms of reduced premia; and if she will make a statement on the matter. [17469/01]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

Over the past three years, a total of 11 new head office undertakings have been authorised to write non-life insurance. In addition, four branch offices of foreign insurers entered the Irish market.

Since the transposition into Irish law of the EU Third Framework Insurance Directives in 1994, insurance companies authorised in any member state may provide insurance cover throughout the entire EU on the basis of their home country authorisation. This has opened up the Irish market to competition from insurance providers in other EU countries. In the past three years, our Department has been notified of the intention of an additional 16 non-life insurers based in other EU member states to conduct business into the Irish market on a services basis.

The new entrants to the market have been offset, to some extent, by take-overs and mergers of insurance groups at international level that have impacted on the Irish market through the consequent effect on subsidiary companies here. In addition, some insurers have ceased writing business in the market, mainly in the area of branch offices. Our policy is to see that as much competition as possible continues to take place on the Irish market.

Question No. 128 answered with Question No. 118.

Questions Nos. 129 and 130 answered with Question No. 119.