Mr. Chris Anako:

This is about the information the insurance company obtains from the client. We conduct an extensive auditing process, which is basically an underwriting process whereby we obtain the accounts of the company, the lease agreements, tax clearance certificates, CVs, business plans and we then sit down with our in-house actuaries in Hiscox - the underwriters - to determine the risk we are opening ourselves to. We then put a rate to that risk and give that to the client. Our current rate, at in and around 2% of course fee per student, in the higher education space in particular, is the most competitive out there at the moment. The cover is purchased on a gradual basis throughout the course. As a student enrols, the cover is purchased. There is no lump-sum payment at the start of the year, which would cripple the institution cashflow-wise.

On top of that, in regard to reputation, off the back of the praise we received in the press last year we are now engaging with a number of accrediting bodies throughout Europe to solve their issues in regard to solvency funds and the like. It is something that they are viewing as a solution. However, we are getting knocked back here for the good that we believe we have done.

In regard to the failures, we have not seen any failures. In 2017, we were approached by an English language school seeking insurance. We did not refuse it cover but we asked it to make a personal commitment to the school. Those involved had come to this country to set up a language school. They had no proof of funds. Is that a risk that should be automatically underwritten by the State under the QQI fund? We asked for a commitment but they were not willing to give it. I do know that that school no longer exists. This is what we are dealing with.

There are many insurance models out there: we are not the only one. As a broker we are constantly being contacted by a number of underwriters who are looking to get into this space. The only deterrent is what is going on in regard to this looming national fund. In regard to the holes in the sector, there is a bunch of providers that would not have something like this in place. However, the providers-clients that we deal with in the English language space and the higher education space are completely secure. The concept of insurance is transferring risk. Hiscox has hundreds of millions of reserves readily available at any one time. That is its job. Even if there was a school messing around, Hiscox has put its name to that school such that if anything happens all students are covered. This could involve the transfer of the course to a different provider for the remainder of the course or a full refund of all fees paid.

That is the difference. Again, it is a transfer of risk. It is not as though a course fee will be put into a fund; rather, a fraction of a course fee will be put into an insurance policy. All students receive a policy certificate and, in case there is a closure, there is a number people can call to contact us. Sedgwick, with 350 staff, has a disaster model in place, while there are 65 staff in O'Driscoll O'Neil's Study & Protect to assist in all closures. We believe that is a suitable number-----