Domestic

Over two million insurance policyholders to benefit from Government’s Motor Insurance Transparency Code

Over two million motor insurance policyholders are expected to benefit from the Government’s Motor Insurance Transparency Code (the Code). The Code (published on 2 March 2026 under the Action Plan for Insurance Reform 2025 – 2029), was developed by a dedicated working group made up of insurers and intermediaries, with input from the Department of Finance and the Central Bank of Ireland (CBI). Its purpose is to improve trust, clarity, transparency, and consumer understanding in how motor insurance premiums are communicated. Key measures include the introduction of:

• a new premium summary statement, issued at both quotation and renewal stages, which outlines the previous premium, the new premium, the difference between them, and the main drivers of pricing such as levies and risk factors
• an annual market overview statement explaining wider market influences including profit levels, broker commissions, and legal costs
• additional requirements relating to risk-mitigation guidance, plain language disclosures, staff training, designated senior management and reasons for declined applications

Rollout of the Code is proceeding on a phased basis as of March 2026, with a formal review within 18 months. Policyholders are expected to start seeing additional disclosures in quotation and renewal documents from Q3 of 2026.

Commencement of Section 18(4) Consumer Insurance Contracts Act 2019

On 13 May 2026, Section 18(4) of the Consumer Insurance Contracts Act 2019 came into force. Under this provision, where the terms or conditions of an insurance policy exclude cover for loss or damage to property caused by criminal or deliberate acts, this only applies to the person responsible for the act or to anyone who abetted, colluded, consented or knew / should have known that the act would cause loss or damage.

Individuals insured under the same policy who were not involved in the wrongdoing may still recover under the policy, however recovery is limited to that individual’s own proportionate interest in the insured property. Those individuals must cooperate with the insurer’s investigation, which may include providing a statutory declaration or documentation relating to the loss, if requested. The insurer will bear all costs involved in investigating a fraudulent claim.

European

Insurance guarantee schemes: EIOPA seeks feedback on draft technical advice

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on its draft technical advice concerning minimum common standards for insurance guarantee schemes (IGS) within the European Union. Across the EU, policyholders currently benefit from uneven levels of protection in the event of insurer failure, reflecting a fragmented landscape of national schemes with differing scope and coverage.

The consultation’s proposals address four key areas:

• the impact of introducing minimum harmonised IGS
• IGS operational functioning
• the conditions required for effective IGS funding
• the interaction between IGS and the IRRD framework

EIOPA considers that the proposed minimum harmonisation measures provide a balanced, proportionate and effective solution, aligned with wider efforts to streamline regulation and reduce administrative burden. EIOPA have commented that it expects IGS implementation to enhance policyholder protection across the EU and strengthen consumer confidence in financial services.

EIOPA RFR technical documentation: Applicable from 30 January 2027

EIOPA published an updated version of its risk-free rate (RFR) technical documentation for calculating RFR term structures. The updates, which will take effect from 30 January 2027, reflect amendments to both the Solvency II Directive and Commission Delegated Regulation (EU) 2015/35. The technical documentation provides a detailed explanation of the revised calculation approach and is intended to improve transparency around the derivation of RFR term structures, while also supporting stakeholders in replicating the calculations. A summary of the principal changes is set out on the cover page, and the accompanying spreadsheet examples demonstrate selected calculations related to interpolation and extrapolation methodology, risk-corrected spreads, and the volatility adjustment.

Date published: 31 May 2026

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.