Pearse Doherty (Donegal South West, Sinn Fein)
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103. To ask the Minister for Finance the purpose of the proposed insurance Bill; and if it will prevent another situation such as that relating to the collapse of Setanta Insurance from affecting customers here. [2876/15]

Michael Noonan (Limerick City, Fine Gael)
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The Solvency II Directive represents a substantial overhaul of European insurance regulation. It sets out new, stronger EU-wide requirements on capital adequacy and risk management for insurers with the key aim of increasing policyholder protection. It is expected that this new regime should reduce the possibility of consumer loss or market disruption in insurance.  As Solvency II is a maximum harmonisation Directive it should result in a more harmonised approach across all EU Member States in terms of the regulation by supervisory authorities of insurance undertakings.  Solvency II will enter into force on 1 January 2016 and work on its transposition is currently underway in my Department, following the holding of a public consultation process late last year.

The Insurance Bill, however, is intended to provide a statutory regime for those insurance companies not covered by the Solvency II Directive. Solvency II does not apply to firms that are winding down (and therefore not taking on any new business) or firms with an annual gross written premium income that does not exceed €5 million.

Based on these criteria, if Setanta were still in operation it would be subject to the Solvency II regime and not the alternative regime to be covered by the forthcoming Insurance Bill.