Michael McGrath (Cork South Central, Fianna Fail)
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157. To ask the Minister for Finance the countries which have compensation schemes in place for collapsed insurance companies; if these schemes would compensate Irish claimants in the event of a motor insurance company collapsing (details supplied); and if he will make a statement on the matter. [11579/17]

Michael Noonan (Limerick City, Fine Gael)
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Insurance guarantee schemes provide last-resort protection to policyholders and beneficiaries when insurers are unable to fulfil their contractual commitments.  They protect against the risk that claims will not be met in the event of a failure of an insurance undertaking.  Such schemes can offer protection by paying compensation to policyholders or beneficiaries, or by securing the continuation of insurance contracts. 

There is no common EU framework in the insurance sector in relation to insolvencies, as exists in other sectors, e.g. bank deposits.  As part of  the recent review of motor insurance compensation in Ireland, my Department established that there are a wide variety of  insurance guarantee schemes in other jurisdictions.  Comparing these arrangements to the Irish compensation framework was difficult as there were significant differences between the schemes established.  For example, these differences relate to eligibility restrictions, protection limits, the nature of intervention, the funding arrangements and the corresponding financial capacity of the schemes.  The Deputy will appreciate therefore that, in the absence of a common EU insurance guarantee scheme, it is difficult to provide the information sought given the differences outlined above.  The provision of such a list may create an incorrect impression that each of the schemes is  directly  comparable.

The European Commission undertook a review in 2010 of the insurance compensation issue.  My Department responded at the time and indicated that Ireland was in broad agreement with the objectives of the White Paper and supported most of the specific proposals contained therein.  In particular, it sought the inclusion of motor insurance business in any proposal from the Commission as  its inclusion would ensure appropriate harmonised treatment of all claims of a particular insurance undertaking in the event of an insolvency.  The European Commission has not subsequently advanced their work  in this area , and I am not aware of any imminent developments on this front. 

Finally, I have attached a link to a 2007 Oxera Report titled "Insurance guarantee schemes in the EU Comparative analysis of existing schemes, analysis of problems and evaluation of options"  which should provide some greater insight into the complexity of the matter.

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Michael McGrath (Cork South Central, Fianna Fail)
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158. To ask the Minister for Finance if insurance companies currently passporting into Ireland from the UK and its jurisdictions have the ability to continue passporting into Ireland if the UK exited EIOPA when the UK exits the European Union, if the UK and its jurisdictions automatically exit the European Insurance and Occupational Pensions Authority, EIOPA; and if he will make a statement on the matter. [11580/17]

Michael Noonan (Limerick City, Fine Gael)
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The ability for financial services entities such as insurance companies or investment firms to passport financial services is based on a collection of measures in EU law that describes how the EU fundamental freedoms operate in the context of financial services.  Once a financial services entity is authorised in one European Economic Area (EEA) Member State the financial services passport allows that firm to carry out its authorised permitted activities in any other EEA state.  This is achieved by either exercising the right of establishment such as setting up a branch, or by providing cross-border services.  The option of a passport is only open to EEA Member States due to the fact that these countries are subject to EU rules.

The ability of the UK and its jurisdiction's regulatory authorities' to participate in the European Insurance and Occupational Pensions Authority (EIOPA) and the ability for UK insurance companies to continue to passport financial services as described above will therefore depend on the outcome of the forthcoming negotiations.  These negotiations will commence once the UK notifies the European Union of its intention to leave through the activation of Article 50 of the TFEU.  At that point, we will be at the start of a process, within which there is expected to be a number of phases.  Ireland will participate fully in all of the structures of the EU 27 in preparing for and conducting the negotiations.  Ireland will continue working with both our EU partners and with the UK to maintain a positive, constructive and orderly approach to these negotiations.  In my view, it would not be appropriate at this stage to try to pre-empt the outcome of those negotiations.