Irish regulator acted on FSA advice but could not find evidence to take action
The FSA raised concerns with the Irish financial regulator over the way Quinn Insurance was underwriting business in the UK in 2008 and 2009, it was revealed yesterday.
The Central Bank of Ireland questioned Quinn Insurance about these concerns, but did not follow up with any further measures, the Irish Examiner reported.
Quinn Insurance was placed into administration in April 2010 because of fears it would not be able to pay policyholders’ claims.
“We acted on the advice and concerns of the FSA, but it did not provide us with any specific data. We asked Quinn insurance questions but we could not find any evidence to proceed,” Central Bankhead of general insurance supervision Domhnall Cullinan told the Oireachtas finance committee yesterday.
The committee heard that the administrator of Quinn Insurance, Grant Thornton, is reviewing the performance of Quinn auditor PwC and its actuaries Milliman for 2007 and 2008.
This review will be presented to the High Court and a recommendation will be made on whether further action should be taken against either firms.
The committee was also told here will be a 2% levy on every insurance policy written in Ireland over the next 15 years to cover the €1.6bn (£1.2bn) losses at Quinn Insurance, which had to be covered by the insurance compensation fund.
Cullinan said losses could be higher than €1.6bn, but it was hoped the eventual figure would be between €1.1bn and €1.3bn.
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