In the wake of the collapse of the Danish-regulated Qudos Insurance, Fianna Fáil Spokesperson on Finance Michael McGrath has written to the European insurance regulator raising concerns about the exposure of Irish consumers as a result of regulatory failures in other EU member states.
Deputy McGrath commented, “Qudos is the third example in recent years of the collapse of insurance firm in the Irish market which is regulated abroad. We had the collapse of Maltese-regulated Setanta Insurance in 2014, the collapse of Gibraltar-regulated Enterprise Insurance in 2016 and now the collapse of Danish-regulated Qudos.
“I have now written to the Chairperson of the European Insurance and Occupational Pensions Authority (EIOPA) to outline the detrimental impact these failures are having on Irish consumers. As the European insurance regulator, EIOPA needs to ensure there is a common standard of insurance regulation across the EU.
“Fianna Fáil supports a properly functioning single European market for insurance. Such a market can bring significant benefits for consumers and supports many jobs across the insurance industry in Ireland. However, this system only works on the basis that the EU-wide system of regulation is applied consistently in every member state.
“While we have undoubtedly had our own regulatory failures in the past in the area of insurance, most notably with Quinn Insurance, it would appear the Irish regulatory system for insurance is now much more stringent. I have now asked EIOPA to set out what steps it intends to take to protect Irish consumers from the failure of insurance firms selling into Ireland but principally regulated abroad.
“This is an issue the Irish government and the Central Bank also need to be pressing at an EU level,” concluded McGrath.