Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

Insurers are private businesses and therefore the Minister for Finance cannot direct them to absorb these particular costs. It is a matter for the insurance company whether to absorb them or not. If they are seeking market share and pricing accordingly, they can absorb them. If the Minister interfered in the pricing of insurance products, he would, in effect, be requiring insurers to sell products at a lower price than they consider appropriate. That would certainly run into difficulty from a solvency perspective and it would be viewed as weakening their balance sheet. It is not a matter for the Minister.

On the basis that there would be no call on the fund prior to it building to its target level of €200 million, it is anticipated the process would take approximately seven years. At the 2% level, the contribution is expected to collect approximately €34 million to €40 million per annum for approximately four years.

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