Financial Services Regulation and Compliance - Insurance Sept 2019
Central Bank of Ireland publishes new rules to be included in the Consumer Protection Code 2012
On 25 September 2019, the Central Bank of Ireland (CBI) published new rules to be included in the Consumer Protection Code 2012 on the payment of commission to financial intermediaries. Intermediaries will be required to publish details of the commissions they receive from product producers on their websites. Any commission received in the form of non-monetary benefits must enhance the quality of the service to the consumer in order to be permitted (free hospitality such as golf trips/sporting events will be prohibited). The CBI will be supervising firms' compliance with these new rules when they come into effect on 31 March 2020.
Central Bank Deputy Governor voices concern over readiness of insurance companies for Brexit
On 27 September 2019, CBI Deputy Governor for Prudential Regulation, Ed Sibley, delivered a speech to a breakfast briefing for the launch of a CEO Survey Report. During his address, Deputy Governor Sibley urged CEOs to continue preparations for a no-deal Brexit. While noting that the Irish financial system is resilient enough to withstand a hard Brexit overall, not all regulated firms are adequately prepared. The considerable uncertainty surrounding Brexit is not an excuse for a lack of preparation. In a wide ranging address, Deputy Governor Sibley also noted that insurance firms need greater engagement with climate change and technology risks.
Central Bank of Ireland publishes latest Insurance Quarterly Newsletter
In September 2019, the CBI published the latest edition of its Insurance Quarterly Newsletter.
Feature topics include:
- an update on conditions of authorisation for all (re)insurance undertakings and, in particular, clarification on the notification requirements for undertakings amending their business plans
- an update on CBI engagement with in relation to climate change, and emerging risks more broadly
- the introduction of new and updates to existing National Specific Templates
The newsletter also provides a series of updates on a range of topics, including: the CBI's continued engagement with regulators in relation to Brexit and the Domestic Temporary Run-Off Regime, the launch of the Guidelines on Preventing Money Laundering and the appointment of Domhnall Cullinan as Director of Insurance Supervision.
Central Bank of Ireland publish new summary of General Good Requirements for Insurance Undertakings
On 2 September 2019, the CBI published its updated summary of the General Good Requirements for Insurance Undertakings. This summary provides high level details of insurance undertakings' obligations in respect of the Consumer Protection Code 2012, Motor Insurance and Health Insurance, the Minimum Competency Code 2017, the Non-Life Premium Levy and the Funding Levy.
EIOPA publishes report on cyber resilience framework for insurers
On 17 September 2019, EIOPA published a report entitled "Cyber Risk for Insurers – Challenges and Opportunities". The report is based on responses from 41 large (re) insurance groups across 12 European countries. The report aims to enhance the understanding of cyber risk for the European insurance sector. The report confirms the need for a sound cyber resilience framework for European insurers highlighting that a well-developed cyber insurance market would assist in transforming the digital economy.
EIOPA establishes Consultative Expert Group on Digital Ethics in Insurance
On 17 September 2019, EIOPA established its Consultative Expert Group (CEG) on Digital Ethics in Insurance to assist in the development of digital responsibility principles. This is a follow up to EIOPA's thematic review of the use of big data analytics (BDA) in motor and health insurance. The digital responsibilities principles will address new business models, technologies and data sources from a fairness perspective, with a specific focus on pricing and underwriting.
The CEG may also be used by EIOPA to act as a sounding board in relation to other initiatives such as promoting a sound governance framework around the use of artificial intelligence and machine learning. The group will meet for the first time on Tuesday, 8 October 2019.
EIOPA publishes monthly technical information for Solvency II relevant risk free interest rate term structures
On 5 September 2019, EIOPA published technical information on relevant risk free interest rate term structures with reference to the end of August 2019.
EIOPA publishes opinion on sustainability within Solvency II
On 30 September 2019, EIOPA published its opinion on sustainability within Solvency II with particular reference to climate-related risks. The opinion addresses, among other items, the following areas:
- the extent to which the valuation of assets and liabilities under Solvency II capture sustainability factors
- how (re)insurance undertakings can account for sustainability considerations through their investment and underwriting practices
- the extent to which internal models currently capture sustainability risks and factors
For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 10 October 2019