Michael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Finance if he is satisfied that all possible efforts, particularly in terms of claims management are being undertaken in order to mitigate the cost of the winding down of Quinn Insurance; and if he will make a statement on the matter. [42312/12]

Michael Noonan (Limerick City, Fine Gael)
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Management of the wind down of Quinn Insurance, including claims management, is the responsibility of the Joint Administrators, under the supervision of the High Court. However the State is required to advance funds to meet the cost of the wind down. While these funds are ultimately recovered through the industry levy, it is a matter of concern to ensure in as much as is possible that the cost of the wind down is kept to a minimum. The position is that under a Transaction Services Agreement (TSA) entered into as part of the QIL sale agreement, Liberty is obliged to provide a number of services to QIL until November 2014, including the settlement of claims in the part of the business under administration.

The Joint Administrators have advised me that they have recruited a new CEO who has extensive experience in the insurance industry to oversee the operation of the TSA and in particular the settlement of claims. In addition, as part of a new enhanced governance structure a claims advisory committee (CAC) has been set up to guide and advise the Joint Administrators and QIL management on future claims strategy and policy. You should note that Ciaran Breen Director of the State Claims Agency has been appointed as Chair of this Group at my request. I have been advised by the Joint Administrators that the CAC is currently devising a robust and distinct strategy for managing the settlement of their outstanding claims going forward with a view to settling them as quickly as possible and at the lowest possible cost.

The Joint Administrators have also indicated to me that in light of the historic volatility in claims reserves, they have spent considerable time reviewing and improving claims controls. Based on independent reviews carried out to date they are much more confident in the underlying controls and processes governing file estimation. The Joint Administrators advise me that taken together, these arrangements will allow them to manage claims in a more cost effective way. In the circumstances outlined above, I am satisfied that all reasonable efforts, particularly in terms of claims management are being undertaken by the Joint Administrators in order to mitigate the cost of the winding down of Quinn Insurance. I can assure the Deputy that my officials will continue to work closely with the Joint Administrators on this matter in order to achieve this objective of minimising costs.