The Dublin International Insurance & Management Association (DIMA) has strongly rejected claims that it has lobbied the Irish Government not to accede to European Commission Directorate proposals to introduce mandatory regulatory standards for the reinsurance industry in Ireland.
The claims were made in a recent newspaper article by Queen's University, Belfast academic Justin O'Brien.
But DIMA chief executive Sarah Goddard emphatically rejected O'Brien's claims and said: “DIMA and its members have fully supported the move to full reinsurance regulation in Europe and have worked closely with the relevant Irish authorities to promote the directive. It is absolutely not the case that we have somehow lobbied against the directive.”
Goddard also rejected the suggestion that there is “light touch” regulation in Ireland, saying: “Through my many dealings with the financial regulator, I would characterise it as ‘firm but fair'. To suggest that there is somehow “light touch” regulation is simply not the case.”
At the same time, she pointed out that regulatory authorities are enforcement agencies and cannot prevent every instance of potentially improper behaviour.
Goddard said: “There have been well-documented examples ranging from inappropriate through to outright fraudulent practices in the most tightly regulated jurisdictions over many decades.
"The existence of strong regulation does not automatically prevent all problems. Conversely, less onerous regulatory regimes can encourage innovations which ultimately benefit the market as a whole.”
Although DIMA said it cannot comment upon the circumstances of individual member companies, Goddard expressed her concern that the historic circumstances surrounding one organisation which is no longer actively trading in Ireland have been used by O'Brien to censure the marketplace and authorities.
“We live in a world of ever-increasingly stringent regulatory and corporate governance requirements,” she said. “DIMA as an organisation has promoted transparency, integrity and ethical behaviour throughout its membership; these are the vital foundation stones upon which a successful reinsurance sector thrives.”
