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The Insurance (Disregard of Certain Medical History and Miscellaneous Provisions) Act 2026 (Act) has been published on the Houses of the Oireachtas website here.
The main purpose of the Act (often referred to as the “right to be forgotten” legislation) is to require insurers offering mortgage protection insurance policies in Ireland to disregard a person’s prior cancer diagnosis where they have been “cancer free” for 5 years prior to the application, which we have covered in a separate article.
However, the Act also contains some other important changes in relation to the powers of the Central Bank of Ireland (the CBI) to present a petition to wind-up insurers and reinsurers, which have received less media attention. This article examines the key changes to the winding-up regime introduced by Part 3 of the Act.
The Act, although signed into law by the President on 15 July 2026, has yet to be commenced.
Changes to the powers of the CBI to wind-up insurers and reinsurers
In addition to the ‘right to be forgotten’ provisions, a notable change introduced by Part 3 of the Act is an amendment to certain provisions of the Insurance Act 1936 (1936 Act), to allow the CBI to petition for the winding up of reinsurers for the first time.
Section 45 of the 1936 Act sets out the powers of the CBI to petition for winding up of an “assurance company”. Currently, that term includes only insurers. Once amended, the term “assurance company” will include both insurers and reinsurers authorised by the CBI.
Under section 45 as currently drafted, the CBI can only petition for the winding up of an insurer on the basis that it is unable to pay its debts. The amended section 45 significantly broadens the grounds upon which the CBI may seek a winding up order against an insurer or a reinsurer by including a number of additional grounds for the petition, namely:
The new grounds to petition for winding up under the amended section 45 of the 1936 Act are very similar to the circumstances in which the CBI may issue directions to a regulated financial services provider or related undertaking under section 45 of the 2013 Act. For example, under both provisions, the CBI can act against a firm where it considers that a firm is, or may become, unable to pay its debts or meet its obligations to customers, including policyholders.
The Act also makes certain amendments to the Insurance Act 1964 regarding contributions to a sub-fund of the Insurance Compensation Fund.
Rationale behind the amendments to the 1936 Act
The amendments to the 1936 Act are intended to strengthen the powers of the CBI when dealing with failing insurers and reinsurers. In the Oireachtas, it was noted that the “changes are intended to give the Central Bank powers consistent with those it already has in other parts of the financial system and allow it to act earlier and more effectively where an insurance or reassurance company is no longer viable.” As such, the changes will bring the insurance sector in line with the wider financial services regulatory framework.
The amendments were carried out in response to the recommendations of the IMF’s Financial Sector Assessment Program Technical Note on Insurance Regulation and Supervision and the Government’s Action Plan for Insurance Reform 2025-2029, both of which have emphasised the importance of enhancing the insolvency framework for insurers and reinsurers alike.[1]
This regime is distinct from the CBI’s role as the resolution authority for failing (re)insurance undertakings, under the Insurance Recovery and Resolution Directive, which is due to be implemented into Irish law in January 2027. However, the new powers of the CBI to petition to wind up (re)insurers would appear to complement its role as a resolution authority, as it will allow the CBI to petition to put a failing (re)insurer into liquidation if it determines that resolution is not in the public interest.
Conclusion
Part 3 of the Act represents a significant expansion of the powers of the CBI to petition to wind-up insurers and reinsurers. Previously, this power was exercisable only in respect of insurers, and only on the basis that an insurer was insolvent. Once commenced, the new provisions will allow the CBI to petition for the winding up of both insurers and reinsurers on a wide range of grounds, many of which are based on the opinion of the CBI.
While the changes to be introduced by Part 3 of the Act have not yet been commenced, insurers and reinsurers should consider the implications of the expanded regime and, as always, ensure that robust and appropriate governance and regulatory compliance frameworks are in place to minimise the risk of intervention by the CBI.
For further information, please contact Stephen D'Ardis, Partner, James Grennan, Partner, Laura Mulleady, Partner, Emma Martin, Of Counsel, Sarah Lee, Senior Practice Development Lawyer or your usual ALG contact.
Date published: 17 August 2026
