Mr. Kevin Thompson:

I will first provide context for the answer to the Deputy's question. Multiple insurers are competing in that space, which means the natural competitive environment will have a restraining effect on premiums. One insurer would not be able to run away with inflated premiums because others would step in and compete at a more competitive price around their own risk tolerance levels.

Each insurer will have its own risk assessment and risk appetite for each area and its own ability, depending on its capital levels, to cover a certain element of risk. One must also remember that in certain areas, one insurer may have achieved its capacity, for want of a better expression, from a risk concentration point of view, while others may not have done so and will be able to accept risks in the area in question. There are multiple factors at play in determining the premium, the level of coverage and charges to premium or exclusions and excesses.