Ceisteanna—Questions. Oral Answers. - Insurance Licences.
asked the Minister for Industry and Commerce the action he proposes to take to ensure that (a) companies holding insurance licences for the country actually engage in the insurance business or surrender their licences and (b) companies holding insurance licences for various types of insurance business in this county engage in all of the types of business covered by the licence or have such licence formally amended.
Comment on this
I have no power to compel companies to engage in any particular type of insurance business, nor does existing law empower me to amend or revoke the licences of insurers not carrying on all the kinds of insurance for which they are licensed. The Deputy will be aware that the recent report of the committee of inquiry into the insurance industry recommended that certain powers should be taken by law in this latter regard, and I am at present considering this along with the other recommendations of the committee.
Comment on this
Is it not the position that certain companies which held licences under the 1936 Act to carry motor insurance but which did not do so and carried on more profitable forms of insurance found their licence for the other forms withdrawn unless they were prepared to carry motor insurance as well?
Comment on this
Have not a number of such companies recently given up their licences under the 1936 Act?
Comment on this
I do not have any information on licences being surrendered. I can tell the Deputy that the power referred to in his question does not exist. We are considering insurance legislation whereby some power designed to achieve the objectives contained in the Deputy's question could be taken.
Comment on this
Is it the Minister's current practice when he is issuing a licence for a number of forms of insurance business to insist that the company carries on a bona fide trade in motor insurance?
Comment on this
Strenuous efforts are being made to encourage the maximum number of companies into the motor insurance market. It is a market that requires more competition and every step is being taken to encourage more active participation in the motor insurance market.
Comment on this
Each licence will be negotiated. I am aware of one licence which was recently granted under which the company is engaged in motor insurance business as a result of this negotiation.
Comment on this
Would the Parliamentary Secretary make it a condition that a new applicant would carry on motor insurance?