It was back in 2013 when three head honchos over at RSA Ireland were suspended following a routine internal audit which brought to light claims and finance issues that had to undergo scrutiny. The Central Bank of Ireland has since stepped in, and now an Irish official wants to know what’s going on.
“An investigation into historical claims-reserving practices at RSA is ongoing and is at an advanced stage,” said a representative of the regulator in February 2015. “Once concluded, decisions regarding enforcement proceedings will be made.”
That was more than three years ago, and Fianna Fáil finance spokesperson Michael McGrath is sounding alarm bells as he calls the lack of updates ‘worrying’.
“The Central Bank commenced its investigation into alleged financial irregularities at RSA Ireland in 2013,” McGrath was quoted by The Times as saying. “These alleged irregularities are extremely serious and involve the company potentially under-provisioning for larger claims.
“We have seen the consequences when insurance companies under-provision and very often it’s the claimants who foot the bill for such failures. It is essential that the Central Bank provides an update on the status of its investigation into RSA Ireland.”
Reaching out to the regulator for completion and cost estimates, the publication was told the Central Bank could not comment on the ongoing probe.
As for McGrath, he will be seeking answers from Irish finance minister Paschal Donohoe.
