Dáil Éireann Debate, Wednesday - 15 April 2015
144. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on the regulation of companies providing life insurance cover; the number of companies providing such cover in the years 2012 to 2014, and in 2015 to date; the number of complaints made to the Financial Services Ombudsman regarding life insurance; and if he will make a statement on the matter. [14131/15]
Amharc ar fhreagraThe day to day responsibility for the regulation and supervision of Irish authorised financial institutions is a matter for the Central Bank of Ireland which is statutorily independent in the exercise of these functions. The Central Bank of Ireland has additional responsibilities in relation to:
- Branch establishments of European Economic Area (EEA) authorised Life Insurance undertakings
- EEA authorised Life Insurance undertakings conducting business by way of services
- Third country branch establishments i.e. a branch of an insurance undertaking whose head office is located outside the EEA.
I am advised by the Central Bank that the number of companies regulated by the Central Bank of Ireland and providing life insurance cover is as follows:
|
Year |
Companies regulated by the Central Bank of Ireland |
Branches of EU regulated companies operating in Ireland |
|
2012 |
51 |
5 |
|
2013 |
53 |
8 |
|
2014 |
51 |
8 |
|
2015 |
50 |
8 |
The supervision process for Life Insurance undertakings mirrors the general supervision process of the Central Bank of Ireland. All Irish authorised financial service providers, whether engaged in international or domestic activities, are expected to implement best practice. Undertakings must have systems and policies in place to mitigate risk and monitor compliance with their internal policies. The role of the Central Bank of Ireland involves oversight of the quality of the institution's corporate governance, risk management and internal control systems. Its supervisory process is carried out by way of
- Analysis of returns submitted to the Central Bank of Ireland
- Risk-rating of undertakings
- Themed inspections across the life insurance industry
- Annual review meetings with individual life insurance undertakings
- Regular correspondence and engagement with undertakings under our supervision.
The Central Bank of Ireland is also responsible for consumer protection issues. There are further regulatory requirements in respect of Consumer Protection, Fitness & Probity, Minimum Competency and Conduct of Business.
The full listing of legislation and regulations applicable to insurance supervision and regulation are available on the Central Bank's website at:
http://www.centralbank.ie/regulation/industry-sectors/insurance-companies/life-insurance-companies/Pages/legislation.aspx.
The Central Bank also has a section on its website dedicated to Requirements and Guidance for Life Insurance Undertakings at:
http://www.centralbank.ie/regulation/industry-sectors/insurance-companies/life-insurance-companies/Pages/requirements-guidance.aspx.
The Financial Services Ombudsman is also independent in the carrying out of his duties to investigate, mediate and adjudicate complaints about the conduct of regulated financial service providers. I, as Minister for Finance, have no role in the day to day workings of the office of the Ombudsman or in the decisions which he takes.
The Office of the Financial Services Ombudsman has informed me that 1,111 complaints were made to him regarding life insurance in the years 2012-2014. Figures for 2015 have not yet been published and I am informed that these figures will not be available until January 2016. A breakdown of the number of complaints made by year is set out below:
|
Year |
Product Type |
Cases |
|
2012 |
Life |
451 |
|
2013 |
Life |
407 |
|
2014 |
Life |
253 |
|
Total |
1,111 |
