Madam, - The Dublin International Insurance and Management Association (DIMA) represents the majority of non-life insurers, non-life and life reinsurers and captive managers based in the IFSC. A report by Justin O'Brien (Agenda, January 9th) suggests that DIMA has been lobbying the Irish Government not to accede to EU Directorate proposals to introduce mandatory regulatory standards for the reinsurance industry. This is emphatically not the case.
If Mr O'Brien had contacted DIMA, he would have learnt that not only have we not engaged in such lobbying, but on the contrary DIMA and its member firms have fully supported the move to full reinsurance regulation in Europe.
Although the EU reinsurance directive allows for a two-year transition period, the Irish Government decided last year that it would aim for an earlier adoption of the directive into Irish legislation. DIMA has actively supported this decision and has worked closely with both the Government and the Financial Regulator during 2005 to ensure that a comprehensive regulatory regime is in place this year.
Mr O'Brien also claims that there is "light touch" regulation in Ireland, but this too is emphatically not the case. Indeed, industry experience is that the Financial Regulator adopts a firm but fair approach to regulation. It is simply untrue that it is taking a softly-softly attitude towards the reinsurance industry. Furthermore, an issue involving one organisation no longer active in the Irish reinsurance market does not indicate a "wild west" environment.
DIMA member firms wrote some €14 billion in gross written premiums in 2004, have total assets in excess of €45 billion, paid more than €100 million taxes in 2004 and currently provide more than 800 high-quality jobs. As an organisation, DIMA has consistently promoted transparency, integrity and ethical behaviour among its members and will continue to do so under the new regulatory regime when it is adopted into Irish legislation. - Yours, etc,
SARAH GODDARD,
Chief Executive Officer,
Dublin International Insurance and Management Association,
The Sweepstakes,
Dublin 4.