Michael McGrath (Cork South Central, Fianna Fail)
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106. To ask the Minister for Finance his views on the losses being incurred by certain insurers in the non-life sector, particularly in motor insurance; the steps the Central Bank of Ireland is taking to address the issue; and if he will make a statement on the matter. [10977/15]

Michael Noonan (Limerick City, Fine Gael)
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In my role as 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 the solvency of Irish authorised financial institutions is a matter for the Central Bank of Ireland which is statutorily independent in the exercise of its regulatory and supervisory functions.  My officials meet regularly with the Central Bank and are in ongoing engagement regarding developments and recent trends in the insurance industry.

The Central Bank operates a risk-based supervision model, PRISM. As part of this model and through its engagement with  insurers, supervisors assess the financial performance of non-life insurers and the risks those non-life insurers are facing. This includes the mitigating actions taken by insurers.  Where appropriate, Central Bank supervisors require insurers to take further actions to mitigate the risks they are facing.

The Central Bank have advised that the 2014 financial performance was unfavourable for a number of non-life insurers in the Irish market due to a number of reasons, most notably the impact of adverse weather conditions in the first quarter of 2014, an increase in claims frequency and severity, and developments in the legal environment in Ireland. The increase in claims frequency may also be attributable to an increase in risk exposure generally reflecting the improved economic environment.