Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

In a cross-border context where the relevant claim relates to an insurance undertaking that is authorised in another member state, the Irish compensation body, the MIBI, has the right to be reimbursed for the relevant compensation by its counterpart in the home member state of the insolvent firm. In practice, that means that if the insurer provides cross-border insurance services, the compensation body in the injured party's member state of residence initially pays the claim of the injured party. That compensation body can then be reimbursed by a compensation body from the insurer's home member state. This will ensure that the ultimate financial responsibility is borne by the insurance sector of the home member state of the insurer, while allowing for quick payments. At an EU level, the governance and reimbursement mechanism between the various EU compensation bodies will be governed by either an agreement of the council of the bureau of which the MIBI is a member, or by means of a designated Act, which we understand is being considered by the Commission at this stage. It essentially follows the existing process but we will have extensive engagement with stakeholders following the passage of this legislation.