Michael McGrath (Cork South Central, Fianna Fail)
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71. To ask the Minister for Finance if he is satisfied that an insurance firm not in business here can enter the Irish market without barrier to entry, have access to the same databases and information as existing market players and therefore compete on a level playing field; and if he will make a statement on the matter. [21884/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Irish insurance sector is diverse, comprising life, non-life and reinsurance firms operating across a range of products and geographical markets. I believe that it is very important that this market is competitive, vibrant and that there are no barriers to entry facing potential new entrants. If we want to increase its capacity and facilitate further competition, this must remain a key policy goal.

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation of the sector. This framework is mainly governed by the EU Solvency II Directive, which provides for three ways in which an insurance undertaking can operate within the Irish market. These are to:

- establish a head office in Ireland (authorised by Central Bank of Ireland);

- establish a branch in Ireland through Freedom of Establishment (FOE); or

- operate on a Freedom of Services basis (FOS).

My understanding is that there are companies operating in each of these channels in the Irish insurance market. The Solvency II framework is designed to allow for a level playing field across the European Union for insurers, not only in terms of access to markets within the EU, but also with regard to the level of supervision and regulation. In the context of my functions around the legal framework governing financial regulation, I am satisfied that insurers can compete on a level playing field.

In relation to the Insurance Ireland operated Insurance Link database I am aware that there are some membership criteria for new entrants. Having said that, this is something that I have no control over.

In conclusion, it is important to note that the Cost of Insurance Working Group’s Report on the Cost of Motor Insurance and the Group's Report on the Cost of Employer Liability and Public Liability insurance have made a number of recommendations that are relevant to the issue of supporting a level playing field. In this regard the insurance fraud database recommendation requires that it be available to all insurers participating in the Irish market for fraud detection purposes. It is hoped that this recommendation, along with other recommendations made in the field of transparency and the reduction of claims related costs in particular, should encourage competition and potential new entrants.