Dáil Éireann Debate, Tuesday - 17 February 2004
173 Mr. Hogan asked the Minister for Finance if he has taken an initiative in the context of the Irish Presidency of the European Union to implement a Single Market regime in respect of insurance products in the interest of cross-frontier trading and the consequential benefit to consumers arising from the increased competition in the sector; and if he will make a statement on the matter. [4176/04]
Amharc ar fhreagraCompetitiveness is a key priority of the Irish Presidency. In the area of financial services, including insurance, my priority is to make progress on the completion of the financial services action plan.
This plan aims, among other measures, to improve the functioning of the Single Market, to the benefit of insurance policyholders and other consumers of financial services. It does so by removing barriers to cross-border trade in financial services and thus increasing the range of choice available to consumers.
Directives on insurance solvency and insurance mediation have already been approved under the plan. The insurance solvency directive sets new solvency margin requirements for insurance companies. This increases the amount of capital that a company must hold to help meet unexpected events and thus offers increased assurance to policyholders, wherever they are living. The insurance mediation directive makes it easier for intermediaries to operate anywhere in the Single Market, thus increasing the choice of insurance products available to customers and helping to ensure they can trust any associated advice. It is a matter for the Commission to propose new legislation. Further proposals in relation to insurance may potentially be brought forward during the course of the Presidency, or shortly thereafter.
Achieving a fully functioning Single Market in the insurance area is a key dimension of the Government's insurance reform programme, so as to increase the range of competitively priced insurance products available to Irish consumers.
