Domestic

The Department of Finance launches a public consultation on the transposition of the (EU) Insurance Recovery and Resolution Directive (see here)

The Department of Finance recently launched a public consultation on the transposition of the Insurance Recovery and Resolution Directive (EU) 2025/1 (IRRD). The IRRD entered into force on 28 January 2025 and is required to be transposed into Irish law by 28 January 2027. It aims to establish a harmonised approach to recovery and resolution across the European Union by ensuring that insurers and relevant authorities are better prepared for situations of significant financial distress. They key objectives of the IRRD are to:

• protect policyholders, beneficiaries and claimants
• maintain financial stability
• ensure the continuity of the (re)insurers critical functions
• protect public funds by minimising reliance on extraordinary public financial support

The IRRD provides National Resolution Authorities (NRAs) with various resolution tools and Member States are required to establish financial arrangements to ensure that NRAs have adequate funding at its disposal in line with the “No Creditor Worse Off” principle. Ireland has discretion to decide whether such funding mechanisms will use ex-ante or ex-post contributions (or a combination of both) and whether other costs associated with resolution can be covered under the relevant funding regime.

European

EIOPA publishes opinion on AI governance and risk management (see here)

The European Insurance and Occupational Pensions Authority (EIOPA) issued an opinion clarifying how existing insurance-sector legislation - such as the Insurance Distribution Directive and Solvency II - should be interpreted in the context of AI. The opinion does not propose to introduce new rules or alter the scope of existing sectoral legislation, such as the AI Act. It instead lays out supervisory expectations that follow a risk-based and proportionate framework with the aim of promoting consistency among National Competent Authorities and providing clarity to the market.

The opinion clarifies existing governance and risk management principles while remaining flexible to different types of AI systems. The proposed framework aims to ensure the responsible use of AI systems in insurance and addresses data governance, record-keeping, fairness, cybersecurity, explainability and human oversight. EIOPA plans to develop a more detailed analysis of specific AI systems and emerging challenges and provide further guidance where appropriate.

EIOPA publishes monthly technical information for Solvency II (see here and here)

EIOPA published its monthly technical information regarding the relevant risk-free interest rate term structures, with reference to the end of August 2025, for Solvency II purposes. This technical information is used for the calculation of technical provisions for (re)insurance obligations. On the same date, as is usual, EIOPA also published technical information on the symmetric adjustment of the equity capital charge under Solvency II with reference to the end of August 2025.

For more information on these topics please contact any member of A&L Goodbody's Insurance & Reinsurance team.

Date published: 30 September 2025

This publication provides an overview of certain legal and regulatory developments that may be of interest to certain entities. It does not purport to provide analysis of law or legal advice and is strictly for information purposes only.