Eoghan Murphy (Dublin Bay South, Fine Gael)
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Absolutely. We must raise these matters with the Central Bank. We are looking at the adequacy of Solvency II and it might be something that needs to be fleshed out with representatives of the Central Bank when they come in. We need to determine whether the Bank believes it is sufficient. We need to look at the move from Solvency I to Solvency II and the changes that have occurred in terms of the type of risk-modelling that has to be done for assets and liabilities by insurance companies as well as the inability to cross-collateralise risk, depending on the different parts of an insurance book. The regime is much more stringent and is making things much more difficult for companies which, for example, have a strong focus on motor insurance, to build up their capital requirements. One of the reasons given to me as to why a company recently left the Irish insurance market was that it could not meet the capital requirements. All of this must be looked at but I do not have any answers regarding the view of the Central Bank.