Michael McGrath (Cork South Central, Fianna Fail)
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183. To ask the Minister for Finance his views on the most recent case of a passported insurer running into difficulty with a company (details supplied); the plans in place to assist the roughly 1,000 businesses left without cover; and the progress at the European level to mitigate against such insurance failures. [36101/16]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the recent media reports in relation to Gable Insurance.

Gable Insurance AG (Gable) is a Liechtenstein incorporated company subject to prudential supervision by the Financial Market Authority (FMA) Liechtenstein. Gable was principally selling commercial insurance policies and surety bonds in a number of European countries, including Ireland, on a freedom of services basis.

Gable entered into administration in October 2016, with PricewaterhouseCoopers AG (PwC) appointed as Special Administrator by the FMA. Subsequently, following an extraordinary shareholders meeting on 11 November, the FMA were informed that no capital injection will be made to Gable by its parent company. Consequently, on 17 November the Special Administrator filed an application with the competent Liechtenstein court, seeking an order that Gable is wound-up. The FMA have stated that the Liechtenstein Court has opened winding-up proceedings and a liquidator has been appointed as of 18 November 2016.

In regard to Gable customers in Ireland to which the Deputy refers, the Central Bank are advising that Gable policyholders immediately contact their insurance broker to establish their legal position, including the need to seek alternative insurance cover. The Central Bank state that the urgency stems from the fact that any claim made by policyholders who hold active policies with Gable, may not be fully covered due to the indebtedness of Gable and the pending winding-up order.  I understand that the Central Bank has written to the relevant brokers in this regard.

Further information is available from the FMA at www.fma-li.li/en/. The Liquidator may be contacted at the following email address gable@bwb.li

It should be noted that Gable passported into Ireland under a key principle of the European Union, that of the freedom to provide services from one Member State throughout the European Union. This principle is an important one and is also availed of by a number of  insurance firms established in Ireland  in order to conduct business into other EU Member States.

Underpinning the ability to conduct business whether in a company's home territory or elsewhere in the EU under the freedom to provide services is the Solvency II Directive which came into force from 1 January 2016. Solvency II is a revision of EU insurance and reinsurance law designed to modernise supervision, deepen market integration and increase the competitiveness of European insurers. Prudential home state insurance supervision has been in place for decades based on the principle of mutual recognition, and an understanding that all supervisory authorities in the European Union supervise at a similarly high level. However,  in reality, there was no uniform standard of supervision in the EU, meaning that there was always the possibility for companies to exploit the regulatory/supervision regimes to their own advantage. One of the main purposes of Solvency II therefore is to try and ensure a harmonised approach to supervision across the EU going forward.

The Central Bank has indicated to me that it  continues to work closely with relevant foreign National Competent Authorities and EIOPA (the European insurance supervisory authority), which has identified as one of its key strategic objectives 'to improve the quality, efficiency and consistency of the supervision of EU insurers and occupational pensions.' It has informed me that it fully supports EIOPA's work in this regard and has actively engaged with EIOPA in its revision of the General Protocol which will enhance the exchange of information between supervisory authorities.

In the area of business conduct, the Central Bank has put in place a consumer protection framework to protect the interests of consumers in dealing with insurers.  The consumer protection framework also applies to European insurers selling in Ireland on a freedom of establishment basis or a freedom of services basis. The consumer protection framework includes codes and regulations that set out standards for firms when dealing with consumers, including when selling insurance policies, handling claims and renewing policies as well as the provision of information and dealing with complaints.  This includes the provisions contained in the Consumer Protection Code 2012.