Mary Harney (Dublin Mid West, Progressive Democrats)

The market here was liberalised in the mid 1990s and perhaps other decisions could have been made then, but they were not. At the time, some 37% of the population had health insurance and everybody thought we were at market saturation level. However, some 53% of people now have health insurance.

The VHI is required to be authorised during 2009 and must meet the same requirements as its competitors in terms of the reserves required. It will be a major challenge for the VHI to meet the requirements to allow it be authorised on the same basis. It is important that better consumer information is provided. The VHI, like other health insurers, is now required to send out renewal notices to consumers 30 days in advance of renewal and to notify them that they can switch insurers without penalty. Many members of health insurance companies do not know that. The provision of such information on motor insurance was very powerful in encouraging people to switch insurers. Any measures we can introduce to better inform consumers and encourage them to look at the different options, including the products offered by other companies, will be forthcoming from the start of next year.

With regard to the legislation, we will have it early in the new year when we get the response from the Commission.

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