Mr. Colm Kincaid:

There are solvency requirements, systems and controls that institutions must have in place to ensure they have the resources to meet their liabilities. This is set out in a framework known as Solvency I which has been and is being revised at European level. From January 2016 onwards, we will have Solvency II, a more sophisticated and robust regime that will apply throughout Europe. We already operate many of its features in the State in respect of the companies we prudentially supervise. Of particular relevance in this case is the fact that Solvency II will introduce a more codified method of valuation of assets and liabilities throughout Europe and more uniform approaches to actuarial standards and practices. The responsibility to establish sufficient resources are available to pay claims is, first and foremost, a that of the management of the insurance company. It must get it right. Clearly, where a company does not, in the first instance, estimate correctly how much money it will need to treat a claim, from that point on, all of its calculations will come up short.