A local insurance broker has called for a review of regulations following the collapse of Setanta Insurance which effects up to 4,000 people in the local area.
Jane Brady, Brady Insurance, believes the regulatory system which allows the company to exit the market without reimbursement for the affected customers needs to be addressed.
As Setanta Insurance is a Maltese regulated company customers who now have to take out a second premium are not entitled to money from the Irish Insurance Compensation Fund which gets its cash flow from the Irish Exchequer, recouped through the special 2% levy on insurance premiums.
Ms Brady has called on the Government to alter their stance in relation to assisting Setanta customers with levy payments, pointing to the fact that previously customers of Quinn, ICI/AIB and PMPA have all been assisted.
Since Setanta Insurance premium’s ceased being valid last month, Ms Brady said she has worked to insure a resolution can be found for her clients and has called on local politicians to “stand up” for those left out of pocket with the cancellation of policies.
John Bissett, President of the Irish Brokers Association stated, “The system in its current state allows insurance companies, which are primarily owned by Irish people and principally based in Ireland, to sell exclusively to Irish customers - but to be regulated in a different jurisdiction.
“The Setanta debacle is a clear example of how this regulatory structure is not appropriate and is not protecting Irish consumers. Insurance entities operating in Ireland, selling to Irish consumers should be regulated by the Central Bank of Ireland.”