Vol. 547 No. 1
106 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she proposes to take in view of the imperfect functioning of the insurance market following the economic collapse of one United Kingdom based insurance company; the steps she will take in consultation with the insurance industry; and if she will make a statement on the matter. [1610/02]
Independent Insurance Company Limited, IICL, is a United Kingdom authorised insurer. Accordingly, responsibility for ensuring that IICL could meet claims from its policyholders lay with the UK authorities which were responsible for the financial supervision of the company.
The insurance industry here provided alternative cover, within a short timescale, for many of the policyholders affected. Such cover is provided through the marketplace by individual private insurance companies, based on their assessment of the risk. The pricing and underwriting of insurance is a matter for individual companies. Under EU law we cannot intervene in relation to the matter of premium levels or in respect of what risks insurers are prepared to underwrite.
With regard to the functioning of the insurance market, under the Single Market EU insurance undertakings can write business in Ireland and have done so. I have encouraged such competition. With regard to motor insurance, I will be considering the functioning of that market in the light of the recommendations of the Motor Insurance Advisory Board, from which I expect to receive the final report within a matter of weeks.
