Finian McGrath (Dublin North Central, Independent)
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158. To ask the Minister for Finance his views on correspondence (details supplied) regarding the liquidation of a company. [24242/14]

Michael Noonan (Limerick City, Fine Gael)
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At the outset, I would like to say that both I, as Minister for Finance, and the Government are concerned over the situation that arose with regard to the Irish policyholders of Setanta Insurance Company Limited (Setanta).  My Department and the Central Bank will be reviewing the circumstances relating to Setanta and will be reporting to me on what lessons can be learnt and how the framework can be strengthened. The European Commission has indicated that it will also review whether any issues raised relating to the regulatory framework require action. 

Setanta is a Maltese incorporated company which was both authorised and prudentially supervised by the Malta Financial Services Authority (MFSA). The Central Bank is in contact with the MFSA in relation to Setanta Insurance Company Limited, the impact on policyholders and the provision for relevant and appropriate information.

Setanta was regulated at EU regulatory level in accordance with a directive known as Solvency I which currently places requirements on the amount of regulatory capital European insurance companies must hold against unforeseen events. I understand that Setanta met its EU regulatory obligations and under EU law is, therefore, entitled to trade across EU borders. Under EU legislation the Central Bank of Ireland is notresponsible for the prudential supervision of Irish branches of credit institutions authorised in other EEA Member States and operating under a passporting arrangement in Ireland.  The Central Bank does however have responsibility for the supervision of such entities in the following areas:

1.in co-operation with the home state regulator, assessment of their compliance with liquidity requirements;

2.consumer protection issues; and

3.compliance with Anti-Money Laundering regulations.

The current legal and regulatory framework for the provision of insurance in the EEA, and the supervision of that activity, is prescribed by European Union Law in the Life and Non-Life Insurance Directives. The provision of insurance throughout the EEA on a freedom of services basis and a freedom of establishment basis (i.e. a branch) within this framework is predicated upon the absence of internal market frontiers and the mutual recognition of the authorisation of insurance undertakings by Member States. 

The Insurance Directives specify particular roles for both the home Member State supervisory authority (i.e. the supervisory authority that grants an authorisation) and the host Member State supervisory authority (i.e. the supervisory authority of a Member State where an insurance undertaking conducts business of a freedom of services or freedom of establishment basis) of an insurance undertaking. Insurance undertakings authorised under the Insurance Directives are subject to solvency and financial reserving requirements, the supervision of these requirements is the sole responsibility of the home Member State supervisory authority. The primary objective of these requirements is to ensure that claims made in respect of policies issued will be adequately provided for by an insurance undertaking.

Under EU law which governs non-life insurance, an insurer is required to inform the regulator in its home Member State (its home regulator) that it intends to pursue business in another Member State. The home regulator must then provide the host regulator with a certificate attesting that the insurer covers the EU Solvency Capital Requirement, as well as the nature of the business which the insurer intends to undertake. The insurer may start to pursue business from the date that the certificate is communicated to the host regulator, in this case the Central Bank of Ireland.

Under Article 20 of the Third Non-Life Directive the Home Regulator is also required to notify the Host Regulator if the solvency margin of an undertaking falls below the statutory requirement. In such instances the Home Regulator should inform the Host Regulator of the measures it has taken to address the solvency deficit.

Following negotiations that were completed at European level in November, 2013, a new regime known as Solvency II will commence on 1 January 2016, which will further strengthen the EU regulatory framework. The Solvency II EU Directive sets out new, stronger EU-wide requirements on capital adequacy and risk management for insurers with the key aim of increasing policyholder protection.  The new regime will also ensure greater cooperation between supervisors. 

With regard to the position of Setanta policyholders, my officials have been in discussions with the Central Bank of Ireland, with the Setanta Liquidator, the Accountant of the High Court and with the insurance industry representative bodies and I have asked them to convey my wish that every effort is made to facilitate Setanta policyholders in obtaining new motor insurance policies and in understanding their overall position.  We are endeavouring to obtain legal certainty on a number of matters relating to policyholders' claims for compensation and this will be made publicly available in due course.  At this time, I propose to set out the position as it currently stands. 

Setanta was formally placed into liquidation by the MFSA on the 30 April 2014 and a liquidator was appointed. Officials from my Department together with officials from the Central Bank met with the Liquidator and his representatives in Ireland on 7 May 2014 and the Central Bank is in ongoing contact with him regarding the position of Setanta policyholders. All Setanta policies have now been cancelled in line with the terms of the policies. 

In the circumstances, I continue to strongly advise policyholders to make alternative insurance arrangements without delay and that they should contact their insurance broker or an insurer directly to seek alternative cover.  This is also the advice of the Central Bank.

The Liquidator made arrangements for policyholders to obtain their "no claims bonuses" certificates from Setanta. Insurance Ireland have informed me that these certificates are being honoured by other insurers and we are aware that many insurers are being flexible surrounding requirements for documents.  In addition, the Insurance Ireland 'Declined Cases Agreement' is available to policyholders of Setanta.  I am informed that under the agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance, if he/she has approached at least three insurers and has not been able to obtain cover from them.  I understand that Insurance Ireland is also making information available to those who have queries, complaints or difficulties in relation to this matter through their service at (01) 676 1914 or by email at .

With regard to Setanta premiums and claims, the position on each policy is for the liquidator to decide in due course.  My officials and the Central Bank will remain in close contact with the Liquidator and I have asked that public statements are provided to clarify matters for policyholders and claimants.

The Motor Insurance Bureau of Ireland (MIBI) is a non-profit-making organisation registered in Ireland.  All insurance companies underwriting motor insurance in this county must, by law, be members of MIBI and contribute to the funding of claims in proportion to their market share.   

The principal role of MIBI is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. This is regulated under the terms of an Agreement between the MIBI and the Minister for Transport, Tourism and Sport.  We are endeavouring to clarify the position on a number of matters relating to policyholders' claims for compensation, including the role of MIBI in this regard.  However, if, for legal reasons, MIBI is not in a position to accept a claim, these third party claims will be eligible to proceed for consideration by the High Court for compensation from the Insurance Compensation Fund (ICF).

The ICF is funded by a levy which is applied to home, motor and commercial insurance operates and under the Insurance Act 1964. The levy is calculated as a percentage, not exceeding 2% of the aggregate of the gross premiums paid to that insurer in respect of policies issued in respect of risks in the State. The purpose of the ICF is to protect policy holders in the event of their insurer becoming insolvent. It is anticipated that the ICF will be adequately funded to meet all expected claims on the fund.

Claims on personal insurance policies will be payable from the ICF.  All ICF payments are subject to the limit of 65% of the amount due or €825,000, whichever is the lesser. Under Section 3.6 of the Insurance Amendment Act 1964 (as amended) first party claims by a body corporate or unincorporated body are not covered by the ICF.

The refund of premiums for either commercial or personal insurance policies is not covered by the ICF or MIBI. However, unpaid premium would fall to be claimed from the Setanta Liquidator in due course. 

Officials from my Department met with the Irish Brokers Association at my request on 30 May and I am aware of their concerns regarding the position of the Setanta policy holders.

Michael McGrath (Cork South Central, Fianna Fail)
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159. To ask the Minister for Finance if he will check the accuracy of his Dáil statement during a Topical Issue debate on Wednesday, 30 April 2014 on the collapse of Setanta Insurance that the Motor Insurance Bureau of Ireland intends to accept all third party claims in connection to Setanta policies; if he will confirm whether this information is correct; and if he will make a statement on the matter. [24264/14]

Michael Noonan (Limerick City, Fine Gael)
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At the outset, I would like to say that both I, as Minister for Finance, and the Government are concerned over the situation that arose with regard to the Irish policyholders of Setanta Insurance Company Limited (Setanta).  My Department and the Central Bank will be reviewing the circumstances relating to Setanta and will be reporting to me on what lessons can be learnt and how the framework can be strengthened. The European Commission has indicated that it will also review whether any issues raised relating to the regulatory framework require action. 

With regard to the position of Setanta policyholders, my officials have been in discussions with the Central Bank of Ireland, with the Setanta Liquidator, the Accountant of the High Court and with the insurance industry representative bodies and I asked them to convey my wish that every effort is made to facilitate Setanta policyholders in obtaining new motor insurance policies and in understanding their overall position.

Setanta was formally placed into liquidation by the MFSA on the 30 April 2014 and Mr Paul Mercieca was appointed as liquidator. Officials from my Department together with officials from the Central Bank met with the Liquidator and his representatives in Ireland in May and the Central Bank is in ongoing contact with him regarding the position of Setanta policyholders. All Setanta policies have now been cancelled in line with the terms of the policies and the Liquidator made arrangements for policyholders to obtain their "no claims bonuses" certificates from Setanta. Insurance Ireland have informed me that these certificates are being honoured by other insurers and we are aware that many insurers are being flexible surrounding requirements for documents.  In addition, the Insurance Ireland 'Declined Cases Agreement' is available to policyholders of Setanta.  I am informed that under the agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance, if he/she has approached at least three insurers and has not been able to obtain cover from them.  I understand that Insurance Ireland is also making information available to those who have queries, complaints or difficulties in relation to this matter through their service at (01) 676 1914 or by email at .

With regard to Setanta premiums and claims, the position on each policy is for the Liquidator to decide in due course.  My officials and the Central Bank will remain in close contact with the Liquidator and I have asked that public statements are provided to clarify matters for policyholders and claimants.

The Motor Insurance Bureau of Ireland (MIBI) is a non-profit-making organisation registered in Ireland.  All insurance companies underwriting motor insurance in this county must, by law, be members of MIBI and contribute to the funding of claims in proportion to their market share. The principal role of MIBI is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. This is regulated under the terms of an Agreement between the MIBI and the Minister for Transport, Tourism and Sport.  I am endeavouring to clarify the position on a number of matters relating to policyholders' claims for compensation, including the role of MIBI in this regard.  However, if, for legal reasons, MIBI is not in a position to accept a claim, these third party claims will be eligible to proceed for consideration by the High Court for compensation from the Insurance Compensation Fund (ICF).

On 16 April, 2014, Setanta determined that the company was insolvent. This means that Setanta does not have sufficient funds to be able to honour its full obligations towards claimants, policyholders and other creditors. Setanta was formally placed into liquidation by the MFSA following a meeting of the creditors which took place on the 30 April, 2014 where a liquidator, Mr Paul Mercieca, was appointed.  At the time of the Liquidators appointment on 30 April 2014 there was a degree of uncertainty regarding the exact legal status of Setanta polices and whether these policies remained valid. The statement made during the Topical Issue debate on Wednesday 30 April 2014, that "the Motor Insurance Bureau of Ireland has indicated that they intend to accept all third party claims in connection to Setanta policies", was accurate as based on the information available up to that time on the status of the policies.  Officials from my Department had been informed that the Motor Insurance Bureau of Ireland (MIBI) had indicated that they intended to accept all third party claims. This statement was used in answer to Parliamentary Questions on 30 April and 01 May 2014.

In the following days there was clarification from the Liquidator that all Setanta policies remained valid until cancelled by either the Liquidator or the policyholder. MIBI has sought legal advice regarding their liability in situations where the unpaid third party claims arising are in relation to insured drivers. Once this ambiguity was brought to the attention of my Department then more appropriate text which stated that "The principal role of MIBI is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. If, for legal reasons, MIBI is not in a position to accept a claim, these third party claims will be eligible to proceed for consideration by the High Court for compensation from the Insurance Compensation Fund (ICF)", was used in the next Parliamentary Questions on 7 May 2014 to reflect this legal position.  

From 27 May 2014 the text was changed to state that "The principal role of MIBI is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. We are endeavouring to clarify the position on a number of matters relating to policyholders' claims for compensation, including the role of MIBI in this regard. However, if, for legal reasons, MIBI is not in a position to accept a claim, these third party claims will be eligible to proceed for consideration by the High Court for compensation from the Insurance Compensation Fund (ICF)." This change was made in order to inform Deputies that the position of MIBI was being clarified. 

Claims on insurance policies will be payable from either the ICF or MIBI.  All ICF payments are subject to the limit of 65% of the amount due or €825,000, whichever is the lesser. Under Section 3.6 of the Insurance Amendment Act 1964 (as amended) first party claims by a body corporate or unincorporated body are not covered by the ICF.

Michael McGrath (Cork South Central, Fianna Fail)
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160. To ask the Minister for Finance further to Parliamentary Question No. 81 of 30 April 2014, if he will provide a list of the 744 insurance firms that are regulated in Ireland for conduct of business rules specifying, of those 744, the 45 which are prudentially regulated in Ireland and write Irish risk; if he will further specify the 67 which are prudentially regulated in Ireland and do not write Irish risk; and if he will make a statement on the matter. [24267/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank of Ireland maintains registers of authorised financial service providers which can be found at; .

A requested list of the 744 insurance firms that are regulated in Ireland for conduct of business rules is titled "Non-Life Undertakings operating on a Freedom of Services Basis as at 08 May 2014" and can be found under the heading "Register of Life and Non-Life Insurance Undertakings".

The latest public data in relation to insurance firms writing general and motor insurance risk in Ireland and risk elsewhere was published in 2013 in the Central Bank Insurance Statistics. The details of these firms are below. The latest data is currently being compiled by the Central Bank based on returns from the various insurance companies and will be published in the coming months.

The 45 firms which are prudentially regulated in Ireland and write Irish risk are;

Allianz plc

Allied World Assurance Company (Europe) Limited

Amtrust International Underwriters Ltd

Aviva Health Insurance Ireland Limited

AXA Insurance Ltd

Axis Specialty Europe SE

BMS International Insurance Company Ltd

Canterbury Insurance Ltd

Carraig Insurance Limited

CODEVE Insurance Company Limited

Coromin Insurance (Ireland) Ltd

Cuna Mutual Insurance (Europe) Ltd

DeCare Dental Insurance Ireland Ltd

Electric Insurance Ireland Limited

Euro Insurances Limited

FBD Insurance Plc

GD Insurance Company Limited

Golden Arches Insurance Limited

Great American International Insurance Limited

Irish Dairy Board Insurance Limited

Irish Public Bodies Mutual Insurances Limited

Ironshore Europe Limited

Kingfisher Insurance Limited

Liberty Insurance Limited

Lifeguard Insurance (Dublin) Limited

Markel Europe plc

Navillus Insurance Company Limited

New Technology Insurance

Noble Insurance Company Limited

Pan Insurance Limited

PartnerRe Ireland Insurance Limited

PI Indemnity Company Limited

Pine Indemnity Limited

Quinn Insurance Limited (under administration)

Red Disk Insurance Company Limited

RSA Insurance Ireland Limited

Seamair Insurance Limited

Societe D'Assurance Generales Appliquees (SAGA) Ltd

UK General Insurance (Ireland) Limited

UPS International Insurance Limited

Valiant Insurance Company Limited

Volkswagen Insurance Company Limited

Western Captive Insurance Company Limited

White Horse Insurance Ireland Limited

Zurich Insurance plc

The total number of firms which are prudentially regulated in Ireland and do not write Irish risk is composed of 49 firms which only wrote foreign risk premiums and 15 firms which did not write any new business in 2012, giving a total of 64 firms. This information is published by the Central Bank only on an annual basis in the Insurance Statistics and was last published on 3 December 2013.

Since then there has been an increase in the total number of firms to 67 and this was the number provided in reply to Parliamentary Question No. 81 of 30 April 2014.  This information was provided by the Central Bank on an anonymised basis, as the Central Bank only publishes the names of firms on an annual basis in the Insurance Statistics. The revised list of firms is expected in October 2014.

The 49 firms which are prudentially regulated in Ireland and wrote only foreign risk are;

Acadia International Insurance Limited

Accent Europe Insurance Company Limited (under administration)

ACE Bermuda International Insurance (Ireland) Limited

Aetna Health Insurance Company of Europe Limited

Allianz Worldwide Care Limited

Alreford Limited

Arbor Property & Casualty Ireland Ltd

Arch Mortgage Insurance Limited

ATC Insurance Ireland Limited

Barclays Insurance (Dublin) Limited

CACI Non-Life Limited

Carrefour Insurance Limited

Catalina Insurance Ireland Limited

Chartis Excess Limited

Classic Brand (Europe) Limited

ENI Insurance Limited

Equinox CA Europe Limited

Esprit Insurance Ltd

European Insurance Risk Excess Ltd

FDI Insurance Ltd

Greenval Insurance Company Limited

Hitachi Capital Insurance Europe Limited

INEOS Insurance Limited

KPN Insurance Company Ltd

Martinsurance Teoranta

MBDA Insurance Limited

Medical Insurance Company Limited

MetLife Europe Insurance Limited

Miripro Insurance Company Ltd

National Grid Insurance Company (Ireland) Ltd

Newell Insurance Limited

NEWWATER INSURANCE LIMITED

Nokatus Insurance Company Ltd

Orkla Insurance Company Ltd

Overseas NEIL Limited

Petroswede Insurance Company Limited

Pharma International Insurance Limited

Philip Morris International Insurance (Ireland) Limited

PMI Mortgage Insurance Company Limited

Preem Insurance Company Limited

Probus Insurance Company Europe Ltd

RSIF International Limited

Santander Insurance Europe Limited

Sasol International Insurance Ltd

TCS Insurance Company of Ireland Ltd

The Baxendale Insurance Company Ltd

Vishay Insurance Ltd

Wagram Insurance Company Limited

Yara Insurance Ltd

The 15 firms which are prudentially regulated in Ireland and did not write any new business in 2012 are;

Baltimore Insurance Ltd

Bavaria Insurance Company Ltd

Beech Hill Insurance Limited

CBL Insurance Europe Limited

Delphi Insurance Limited

Deutsche Post Insurance Ltd

Dornoch International Insurance Limited

Inveralmond Insurance Limited

Irish Permanent Property Company Limited

Nautilus Insurance (Europe) Limited

Standard Trane Insurance Ireland Ltd

Tetra Laval Insurance Company Ltd

Trans-Europe Assurance Limited

W.T.C.D. Insurance Corporation Limited

XERON INSURANCE