Dáil Éireann Debate, Thursday - 29 September 2016
17. Deputy Seán Barrett asked the Minister for Finance if he is satisfied with the licensing arrangements currently in place in relation to insurance companies transacting motor insurance; and if he will make a statement on the matter. [27540/16]
Amharc ar fhreagraMotor insurance companies are authorised under the European Union (Insurance and Reinsurance) Regulations 2015. This regulation transposes the EU regulatory framework for insurance and reinsurance known as Solvency II into Irish law.
It provides that the authorisation and the day-to-day responsibility for the supervision of insurance companies is a matter for the Central Bank of Ireland which is statutorily independent in the exercise of its regulatory functions.
The European Union (Insurance and Reinsurance) Regulations 2015 ensure that a rigorous and robust authorisation process takes place and they provide the appropriate safeguards to ensure that only companies that meet the necessary governance and capital requirements can be approved by the Central Bank. In this regard, the regulations clearly outline the information that must be provided by companies seeking an authorisation to conduct business in Ireland. In addition, the Central Bank has published guidelines to assist applicant firms and publishes a register of authorised non-life insurance firms in the Registers section of its website.
The Central Bank has advised that its Insurance Supervision Directorate is responsible for the prudential supervision of insurance and reinsurance undertakings authorised in Ireland. In carrying out this role, the Insurance Directorate monitors the risks posed by undertakings along with issuing standards, policies and guidance which undertakings are expected to meet.
In addition, the Solvency II Directive provides for the 'passporting' of services into Ireland from other European and EEA countries. 'Passporting', which is the establishment of a branch or operation by way of freedom of services, is a right of EU-authorised firms under the single market. Passporting is notified to the Central Bank by the home state regulator which is responsible for supervision of its foreign business.
In relation to such foreign business, it should be noted that the Central Bank has indicated that supervisory authorities across the European Union co-operate and share relevant information to achieve the objectives of insurance supervision and, in particular, financial stability and adequate protection of policyholders and other stakeholders.
