Regulation although effective within the Irish Insurance industry will be increased to reflect the ongoing growth in business according to the Central Bank.

 

Regulation although effective within the Irish Insurance industry will be increased to reflect the on going growth in business according to the Central Bank.

Matthew Elderfield head of financial regulation at the Central Bank of Ireland has told the European Insurance Forum, that the number of regulatory staff overseeing the Irish insurance industry is to increase to 113 this year. This will happen in conjunction with an increase in actuarial staff and also the appointment of a director of insurance whom will answer directly to Mr. Elderfield.

Mr. Elderfield also remarked that “The Irish financial crisis – a banking crisis – does present a lot of lessons to be learned about the way regulation and supervision generally didn’t work effectively in Ireland. The various reports on the crisis, and also my own observation, highlight not only banking-specific problems but also some fundamental gaps in the basic regulatory infrastructure that applies across all sectors. These include an absence of effective standards for corporate governance and fitness and probity and also weaknesses in how the Central Bank is resourced and organized for front line supervision”. Mr. Elderfield also stated that in his opinion however, “the rule book for banks shouldn’t be Xeroxed wholesale onto insurance”.

Mr. Elderfield described the Irish insurance sector to his audience as “one of the clear financial success stories” in Ireland, despite the downturn, and said the industry was “well positioned” to expand and provide a “platform for increased activity when the insurance and economic cycle returns to growth conditions”. The Insurance Industry in Ireland adds significantly to the country’s economy with more than 300 licensed insurance and reinsurance companies operating, and writing €58 billion of gross written premium in 2009 alone.

This entry was posted in Business Insurance, Uncategorized. Bookmark the permalink. Comments are closed, but you can leave a trackback: Trackback URL.