Michael McGrath (Cork South Central, Fianna Fail)
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117. To ask the Minister for Finance the detail of insurance companies selling motor insurance here which are prudentially regulated in an EU member state other than Ireland; the country in which they are prudentially regulated; if they are regulated here for conduct of business purposes; if he or the Central Bank has any concerns in relation to these firms selling business here; and if he will make a statement on the matter. [7794/17]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation in Ireland, including the regulatory environment for life and non-life insurance. I have no role in day to day supervision of the insurance industry, as this is the responsibility of the Central Bank of Ireland.  The Central Bank of Ireland has two specific mandates as regards insurance supervision.  First, it is responsible for the prudential supervision of insurance companies authorised by the Central Bank of Ireland.  Second, it is responsible for the supervision of conduct of business in Ireland, also referred to as consumer protection.  All insurance undertakings operating in Ireland, whether authorised by the Central Bank of Ireland or a competent authority of another EU state, are subject to conduct of business supervision by the Central Bank of Ireland. 

It is important to note that the legal and regulatory framework for the provision of life insurance, non-life insurance and reinsurance in the European Economic Area (EEA), and the supervision of that activity, is prescribed by EU Directives and Regulations.  This framework allows for the freedom to provide services from one Member State into another throughout the European Union. This is a key principle of the European Union and is 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, increase the competitiveness of European insurers and ensure a harmonised approach to supervision across the EU going forward.  

The Government is supportive of the principle of the freedom to provide services across the European Union and is of the view  that the legislative framework underpinning this principle is robust.  Additionally the Central Bank has informed me that it works closely with relevant foreign National Competent Authorities and EIOPA (the insurance European 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.' The Central Bank of Ireland 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.

Finally, I am informed by the Central Bank that when an insurance undertaking is notified to the Central Bank by an equivalent EU / EEA supervisory body they are added to the register of service providers or branch establishments.  This register is available on the Central Bank's website and includes the details that the Deputy has listed in his question. 

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