Clare Daly (Dublin North, United Left)
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272. To ask the Minister for Finance the steps his Department has taken, or plans to take, to address the regulatory and consumer protection issues arising from massive consolidation in the insurance market, a consolidation which is likely to increase when the Solvency II regime comes into force on 1 January 2016. [23795/15]

Michael Noonan (Limerick City, Fine Gael)
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One of the key objectives of the Solvency II Directive is to enhance the protection of policyholders and beneficiaries. It also seeks to better regulate the insurance industry throughout the EU.  These objectives will be achieved by the correction of weaknesses identified in the current Solvency I regime. To further achieve its objectives the framework Directive has changed the emphasis of the regulatory regime to a system which focuses on risk management.

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 Central Bank, which is statutorily independent in the exercise of its regulatory functions. The Central Bank of Ireland has informed me that it has a comprehensive and detailed plan for the implementation of the Solvency II Directive in Ireland. The structure of the Solvency II project in the Central Bank includes a Steering Committee to provide strategic oversight, a Programme Board which directs and guides the project and an Implementation team. The Steering Committee is chaired by the Deputy Governor (Financial Regulation), Cyril Roux. The Programme Board is chaired by the Director of Insurance, Sylvia Cronin. A full analysis of the requirements of Solvency II has been undertaken and a number of workstreams were established in the Central Bank to cover each area. Each workstream has a detailed plan and milestones to complete.

In addition, the Consumer Protection Code, which was revised in 2012, contains a wide range of provisions that protect all consumers in the State, including those of insurance firms whether, or not, they are prudentially regulated here. The Code expects that a regulated entity acts honestly, fairly and professionally in the best interests of its customers. The Code contains specific requirements around Provision of Information, Knowing the Customer and Suitability, Claims and Complaints Handling. The Central Bank can bring enforcement action against regulated firms for breaches of this Code. 

The Minimum Competency Code, introduced in 2011, ensures that consumers obtain a minimum acceptable level of competence from individuals acting for or on behalf of regulated entities in the provision of advice and associated activities in connection with retail financial products.

Should Solvency II lead to consolidation in the insurance sector and resulting competition issues, these would be a matter for The Competition Authority which  is under the aegis of the Department of Job, Enterprise and Innovation.