Pearse Doherty (Donegal, Sinn Fein)
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143. To ask the Minister for Finance the legal framework that applies for the establishment of a mutual insurance fund; when this process was last reviewed; and if he will make a statement on the matter. [10502/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset the Deputy should note that, as the term ‘mutual insurance fund’ is not one which is used within the Irish legal framework as it relates to life and non-life insurance, I am making the assumption for the purpose of this reply that you are referring to the establishment of a mutual insurance company.

As the Deputy is aware, as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. In this regard you should note that the Solvency II Directive (2009/138/EC), which was transposed into Irish law via the European Union (Insurance and Reinsurance) Regulations 2015 (S.I. No. 485 of 2015) and came into force from 1 January 2016 is the framework for the regulation of insurance undertakings in Europe. Solvency II sets out new, more comprehensive EU-wide requirements on capital adequacy and risk management for insurers. It was designed to modernise supervision, deepen market integration and increase the competitiveness of European insurers.

As I have no role in the day to day supervision of insurance companies, I consulted the Central Bank on the Deputy’s query.  In response the Bank has advised that any insurance or reinsurance undertaking, including a mutual insurance company, wishing to establish its head office in Ireland and wishing to carry out the business of insurance or reinsurance must first obtain an authorisation from the Central Bank of Ireland in accordance with the European Union (Insurance and Reinsurance) Regulation 2015 – S.I. No. 485 of 2015.

In summary therefore in principle the same legal framework applies to a mutual insurer as applies to a non-mutual insurer.