Pat Breen (Clare, Fine Gael) | Oireachtas source

This matter is being treated with urgency by the Department of Finance and the Minister. As the Deputy said, the Minister of State, Deputy D'Arcy, has been in contact with the UK Treasury and the European Commission. We hope to get an update as soon as possible on their plans in that regard. We are concerned about it. I have taken careful note of all the points the Deputy has raised during the debate. It is hoped that the Danish authorities will come to a decision quickly to provide certainty to policyholders and claimants. The Deputy should note that the Minister is very conscious of the problems caused in recent years by the number of non-life companies passporting into the Irish market, particularly in the light of the significant motor insurance claims. On the other hand, Ireland is a major beneficiary of the cross-border passporting regime, particularly in the life insurance sector.

It should be noted that the Solvency II regulatory framework is not a no-failure regime. It is not possible, as we all realise, to build a viable system that will provide a cast iron guarantee that no insurer will ever fail. It is important, therefore, that EU supervisors properly and consistently supervise the insurers they authorise and that there be greater communication, as the Deputy said, between supervisors across the European Union on their respective companies in conducting cross-border business. In that regard, there is a proposal, as part of the ongoing review of the European supervisory architecture, to further improve cross-border co-operation and communication through the strengthening of cross-border collaboration platforms which operate on an ad hocbasis. However, the proposal would ensure a more formal structure was put in place where an insurer did a lot of cross-border business. It would give supervisors in the countries where insurance was written greater insight into how the business was being conducted. The Minister, Deputy Donohoe, and his colleague, the Minister of State, Deputy D'Arcy, are very concerned about this issue for Irish policyholders and every effort is being made in that regard. There is constant contact by the Department of Finance and other agencies with the Danish authorities to ensure a quick decision can be made in order that it will not extend beyond Christmas, something about which the Deputy is concerned. I will convey his views to the Minister.

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