Dr. Cyril Roux:

There is precedent. Ten to 12 years ago, prices and claims were high and the Government and the Oireachtas took action to reduce them. There was an effective, multi-strand policy. Ireland has done it before and this should give us comfort that a multi-strand approach would work. Some decisions are judicial decisions that the committee and the Central Bank cannot do anything about. When judges say, for good reason, an insurer cannot continue to operate at a 3% discount rate but must operate at 1% discount rate because it is the new normal and is what they should expect, it is incumbent on firms to recalculate their claims taking into account a discount rate that moved from 3% to 1%. This means a higher claims provision, and we will ensure firms recalculate. It is a judicial decision and a fact of life. It is not a capricious judicial decision and is well reasoned but it has that effect.

On the legislative side, when the Government decides to ask insurers to pay for disability benefits, I do not question it. It is probably for a good reason. However, it will have an impact. It means insurers will need to pay with premiums. In everything we do, we must think about the balance of benefits for society and the impact it has. This is what Members of the Oireachtas do every day when they make decisions in the House. There is hope for greater stability. I hope the book of quantum will be used very broadly, including in court. We will have to see about that.