Are VHI regulated by the Fin. Regulator or not?

J

jimjim972

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I can't work this one out.

If you look at VHI website, the ad for MultiTrip Travel Insurance says "The Voluntary Health Insurance Board trading as VHI Healthcare is regulated by the Financial Regulator".

I recently read that they were NOT regulated by the financial regulator and were looking to change their status. Has it changed? Someone on previous thread in December said that they were.

Is it possible to be regulated for Travel Insurance and not Health Insurance ? Both Quinn & Hibernian say on their websites that they are regulated by the Financial Regulator.
 
VHI are acting as agents for a company called Europ Assist and VHI market and sell the product on their behalf. It's this activity (i.e. the marketing and selling) that is regulated by the Financial Regulator.

As far as I know, VHI's regulatory status in relation to health insurance hasn't changed and they aren't regulated by the Financial Regulator.
 
The VHI does not have to meet the reserves criterion, because it is state owned and has got an exemption for this reason.

Michael seems to imply that they were not regulated because they did not meet the criterion. They are not obliged to meet it.

From a prudential point of view, they don't need to be regulated.

From a consumer point of view, you can go to the Ombudsman. I don't know if they have to comply with the FR's Consumer Code.
 
Another facet to consider is that in April 2007 the Government announced that VHI should be a conventional insurer regulated by the Financial Regulator by the end of 2008. See [broken link removed]for the Dept of Health press release.

There's a relevant line in there: "The VHI will be directed to comply with the Financial Regulator’s Consumer Protection Code in the same manner as if it were an undertaking already regulated by the Financial Regulator."

The derogation that Brendan mentions was the subject of a complaint to the EU Commission (by the then VIVAS). The Commission requested that the derogation be abolished. See [broken link removed]for VHI's reply.

The long and the short of all this is that, at present VHI aren't regulated by the Financial Regulator but have been instructed by the Government to adhere to the Regulator's code (which I think they would have followed anyway). VHI have missed the deadline of achieving regulatory status but I imagine they are still working towards it. And they are governed by the Financial Ombudsman AND the Health Insurance Authority.
 
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