Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The final point I would make is directed towards consumers and policyholders, namely, that they should listen very carefully to the tag-lines we hear on radio advertisements, for example, that an insurer is regulated by the Central Bank for conduct of business purposes. That does not mean that the Central Bank is the principal regulator of that insurance company; that insurance company could be regulated in Malta or Slovenia and it could just passport its services into Ireland. There is no consumer awareness of the difference between a firm being prudentially regulated in Ireland and being regulated here for conduct of business purposes.

There should be an awareness campaign to ensure consumers are more informed about this issue. As a result of the Setanta collapse, we saw the difference it can make. We also saw the difficulties presented when a company, essentially regulated abroad, collapses in Ireland with the claims of 1,700 customers directly affected, as well as the 70,000 customers who did not get the full value of the premium they had paid for the year ahead. This issue needs to be examined.

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