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

The financial services area is a topic we have discussed at length in recent months in the context of Brexit preparedness. These sections essentially provide for a temporary run off regime so that existing policies and contractual obligations will continue to be recognised for a period of three years but no further new business can be written by firms that have not changed their regulatory structure, which is fair enough. I ask the Minister to provide an update on the major insurance providers in Ireland and the Central Bank's or the Department's assessment of their preparedness. In the context of policies written in Ireland, to what extent have firms that rely on the passporting provisions changed their regulatory structure so that this section will not apply to them or is this still a concern? On second stage the Minister referred to the fact that some UK prudentially regulated insurance firms and some of which are prudentially regulated in Gibraltar have not made the necessary changes. It may well be precautionary, but this is why the three year temporary run off is provided for. Presumably there are still firms that have not done it. What will prevent such firms from writing new business in a scenario where they are no longer permitted to do so but are continuing to operate here? The policyholders in that scenario would be exposed because those policies would not be valid. Pre-existing policies would be valid for a three year period but any new policies would not have the status of regulatory protection.

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