Mr. Gerry Cross:

I will take the first and third questions and hand over to my colleague, Mr. Cassidy, to comment in response to the Deputy's important question on employment liability, public liability and the trends we are seeing in that regard.

On the issue of our supervisory regime, we would describe ourselves as first in class. As a member of the European system of financial supervision, with a very large home market of firms that are resident here doing business throughout Europe, it is very important for Ireland, the economy and all of us that the Central Bank be seen as a very credible, high-quality and successful regulator. I think, although I speak from my own book here a little bit, that is the perception that exists among our colleagues.

One aspect that gives us an enhanced voice among our peer organisations in Europe is the fact we integrate not only central banking and financial regulation but also prudential and conduct regulation. In our engagement throughout Europe, we are able to say that everything we do in the regulation and supervision of firms' resilience, governance, risk management and soundness, as well as their behaviour, conduct and culture, is about the consumer and the policyholder. That resounds loudly with our European colleagues. I appeared before the committee a few weeks ago to discuss the individual accountability framework. That the Central Bank has played such an important role in the development of that concept is an important aspect in discussions we have with our European colleagues.

On the definition of "business interruption", one of the challenges relates to the fact insurance policies are not standardised. Companies will choose to cover different types of risks and to deal with risk in different ways. What has become much clearer is the types of policies where there clearly is cover, and that is a result of the work we and the Financial Services and Pensions Ombudsman have done, as well as High Court judgments.

That is not to say that in relation to other issues there are not some legal engagements still under way, but at least, from our point of view, there is now a great deal of clarity around what is covered by the policies that are in force. I will ask Dr. Cassidy to address that point.