Joan Burton (Dublin West, Labour)
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Question 40: To ask the Minister for Finance his views on the solvency ratios of firms operating in the insurance market here; if he instructed the Financial Regulator to seek monthly solvency data from such firms; if contingency plans have been drawn up by his Department in the event that an insurance firm had to be underwritten by the Government in order to ensure it could fill its financial obligations; and if he will make a statement on the matter. [38844/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In my role as the Minister for Finance I have responsibility for the development of the legal framework governing financial regulation. The day-to-day responsibility for the supervision of financial institutions is a matter for the Financial Regulator, which is statutorily independent in the exercise of its regulatory functions. The Financial Regulator is also obliged to treat as confidential the information it holds on regulated entities. However, he has advised me that on the basis of the latest figures available, all insurers meet the statutory solvency margin requirements. He has also advised me that monthly monitoring of solvency positions will take place where necessary.

It should be noted that the Financial Regulator approaches prudential regulation from a risk perspective and tries to target its supervisory resources on those businesses with a higher risk profile and with the propensity to have the greatest impact in the event of a failure. This approach dovetails with the broader financial stability agenda in which my Department, the Central Bank and the Financial Regulator work closely. This agenda takes account, on an ongoing basis, of the general financial well being of the insurance industry and provides the basis for an appropriate response to changing circumstances and developments.