The financial regulator plans to step up its programme of inspections of insurance companies, the the Irish Financial Services Regulatory Authority (IFSRA) chief executive Dr Liam O'Reilly announced yesterday.
Dr O'Reilly said IFSRA hoped to put resources in place in the coming months so that the programme of on-site visits to insurance companies it inherited from the previous regulator for the industry, the Department of Enterprise, Trade and Employment, could be intensified "to the advantage of all".
Dr O'Reilly told an audience of insurance industry representatives at the Insurance Institute of Ireland's annual conference yesterday that he would consult the industry on what would be an appropriate level of inspection.
"My own view is that no amount of desktop analysis is an adequate substitute for a hands-on inspection by regulatory staff," Dr O'Reilly said.
He signalled that more frequent reporting of certain industry data would be required in future. He added, however, that the IFSRA was aware of the cost to industry of collecting and providing such data.
The regulator is devising a new way of deciding which financial institutions need most supervision, he said yesterday.
Under the new system, larger insurance companies could face more investigations, as relative importance to the market may be taken into account when allocating resources.
The regulator's supervisory regime, which includes random inspections, currently targets companies that are perceived to be high risk.
IFSRA, funded mostly by the Central Bank, will be seeking funding from the financial services industry from 2004. A consultation paper on the format for funding will be issued shortly, Dr O'Reilly said yesterday.
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