Insurance.Lecture2
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The document discusses the Irish insurance market, which represents 7.4% of Ireland's GDP and employs over 15,000 people. It established the Financial Regulator in 2003 to monitor financial institutions and provide consumer protection. The Irish Insurance Federation represents 63 insurance companies in Ireland and works to further the interests of the industry. Dublin's International Financial Services Centre was established in 1987 to boost the economy through low corporate tax rates and attract foreign investment in financial services.
Insurance.Lecture2
- 1. Insurance Lecture 2
- 2. Insurance – The Irish Market
- 3. About the Irish Insurance Industry The Irish insurance market is a key sector and major contributor to the performance of the Irish economy. IIF member insurance companies’ domestic premium income in 2007 was €13.4 billion. This represents 7.4% of Gross Domestic Product (GDP)
- 4. About the Irish Insurance Industry IIF’s 63 member insurance companies employ over 15,000 people in Ireland directly as at the end of 2007. Thousands more are employed in associated businesses such as insurance brokering, pensions and actuarial consultancy, risk management, fund management and loss adjusting. Insurance plays a vital role in the economy and society by offering protection and facilitating individuals and businesses take risks. The insurance market contributes substantial tax revenues to the State annually.
- 5. Financial Regulator The Financial Regulator was established on 1 May 2003 following a government decision to set up the Central Bank of Ireland as the Central Bank and Financial Services Authority of Ireland.
- 6. Financial Regulator The structure combines two distinct component entities - the Central Bank and the Financial Regulator – each with its own particular set of responsibilities and each with its own specific governance structure. The Central Bank’s responsibilities include surveillance of the strengths and vulnerabilities of the overall economy and financial system.
- 7. Financial Regulator The Financial Regulator’s remit includes monitoring the financial soundness of individual institutions, in addition to wide-ranging consumer protection powers.
- 8. Financial Regulator The roles are complementary and they enjoy the closest cooperation with our colleagues in the Central Bank. Indeed the recent and ongoing market turbulence has reinforced our view that prudential supervision, financial stability and consumer protection are inextricably linked so as to merit the combined approach to supervision that our structure demands.
- 9. Financial Regulator The legal structure of the Financial Regulator and Central Bank requires the sharing of corporate resources and other support services of the single legal organisation including manpower, technology, accommodation, corporate services, statistics and internal audit This sharing of resources and services achieves savings and efficiencies by avoiding unnecessary duplication of support services and corporate infrastructure.
- 10. The Irish Insurance Federation (IIF) The Irish Insurance Federation (IIF) was founded in 1986, and is the representative body for insurance companies in Ireland. The IIF has 63 member companies, which employ over 15,000 people.
- 11. The Irish Insurance Federation (IIF) This includes insurers serving both the domestic market and writing business in overseas markets from a base in Ireland. Collectively, IIF members write over 95% of all life and non-life insurance business in Ireland
- 12. The Irish Insurance Federation (IIF) As the voice of insurance companies in Ireland, IIF's key functions include: Representing its members' interests to Government, state agencies, regulatory bodies; public representatives; other interest groups, the media and the general public;
- 13. The Irish Insurance Federation (IIF) Keeping members abreast of relevant policy and regulatory developments and providing a forum for member debate and policy formulation on such issues; Providing information and increasing understanding of insurance among Government, the wider policy-making community and the general public.
- 14. Dublin's IFSC The IFSC was established in 1987 under legislation designed to boost activity and employment in the Irish economy. The Government had identified the growth potential of the international financial services sector and recognised that Ireland had the capacity to develop in the industry because of its well developed financial infrastructure, a sophisticated internal and international communications system and a young and highly educated population.
- 15. Dublin's IFSC The Finance Act, 1986, introduced financial incentives to encourage urban renewal and investment by the private sector. The Finance Act 1987 established a special 10 percent corporation tax rate for certified companies setting up in the IFSC. From the end of 2002, this 10 percent rate ceased to apply to financial services companies, except for those operations that set up before before July 1998, which continued until the end of 2005.
- 16. Dublin's IFSC All other operations are now subject to the standard corporation tax rate of 12.5 percent on trading income. Since the 1st January 2006, companies in the IFSC in Dublin pay tax at the normal corporation tax rate of 12.5 per cent.
- 17. Dublin's IFSC The special IFSC rate ended in accordance with agreements between Ireland and the EU on state aid rules. The 12.5 per cent is still below the corporation tax rate of many of Ireland's European competitors; although several new EU countries from eastern and central Europe have also slashed their corporation tax rates to emulate Ireland's achievements in attracting foreign direct investment.
- 18. Next Weeks Lecture CII - The Chartered Insurance Institute Insurance Brokers Association of Ireland The Irish Insurance Industry Statistics