Pat the Cope Gallagher MEP has received confirmation from the EU Commissioner for Internal Market and Services, Michel Barnier that the European Commission will investigate the closure of Setanta Insurance in Ireland.
Approximately 70,000 policyholders in Ireland have protection with Setanta Insurance, including many small business owners with vans. While based in Dublin, Setanta Insurance is licensed in Malta and regulated by the Maltese Financial Services Authority.
Mr. Gallagher said today “I am pleased that Commissioner Barnier has agreed to my request to look into the matter. I contacted the Commissioner earlier this week as I am extremely concerned that the policyholders will not receive the necessary protection following the company’s decision to close down.”
Mr. Gallagher further commented “This situation is simply unacceptable. It is essential that both the European Commission and the Irish Government provide immediate assurances to policy holders that they will not be placed at a financial loss due to the liquidation process.”
“It is also necessary for the Commission and the Government to outline how an insurance company was allowed to operate in Ireland without the necessary funds. In the aftermath of the economic and financial crisis, the EU institutions established the European Insurance and Occupational Pensions Authority to oversee the supervision of the insurance sector in Europe. However, it appears that in reality we still lack adequate supervision and oversight of the financial sector in Europe.”