Domestic

Central Bank of Ireland sets Insurance Compensation Fund Levy to 0%

On 29 September 2026, the Central Bank of Ireland (CBI) announced that the Insurance Compensation Fund (ICF) levy will be reduced from 1% to 0%. The ICF was designed to ensure that outstanding payments are made to policyholders where a non-life insurer authorised in Ireland or another Member State goes into liquidation.

This reduction will take effect from 1 January 2027. Where an undertaking has passed this levy on to policyholders as a separate charge listed in its policy documentation, the CBI expects the reduction is reflected in its policies from 1 January 2027 onwards. Where an undertaking explicitly states the levy charge in a policy, the CBI expects that the levy should be updated to reflect its removal from 1 January 2027.

European

EIOPA publishes its technical advice on minimum common standards for insurance guarantee schemes across the EU

EIOPA has submitted its technical advice to the European Commission on the targeted harmonisation of minimum common standards for insurance guarantee schemes (IGS) in the EU. EIOPA notes that minimum common standards offer a balanced, proportionate and effective approach consistent with the broad objectives of regulatory simplification and burden reduction, while supporting policyholder protection across the EU. The technical advice provides a number of recommendations including on the proposed scope of IGS coverage, the trigger events for activation of an IGS and funding arrangements for IGS. The Commission is required to provide its report on the technical advice and assessing the appropriateness of minimised common standards in respect of IGS, to the European Parliament and Council by 29 January 2027.

EIOPA publishes a follow-up progress note on its simplification initiatives

On 28 September 2026, EIOPA published a follow-up note on its approach to simplification. The note reviews the progress made so far and outlines EIOPA’s plans for continued regulatory simplification and the reduction of unnecessary complexity across Europe’s insurance sector. EIOPA notes certain simplification objectives achieved to date, including reducing quarterly reporting templates, shortening certain sets of guidelines and implementing a new proportionality framework under Solvency II.

Additionally, EIOPA calls for the early, structured involvement of regulators in the legislative process to support legislators in assessing the need, scope and feasibility of technical mandates. EIOPA also proposes the use of phased implementation timelines to mitigate any unnecessary operational pressure on undertakings where multiple obligations under different pieces of legislation overlap. On supervision, EIOPA emphasises the value of structured industry engagement in identifying practical barriers arising under the existing legislative framework. EIOPA notes it will continue its work towards its simplification objectives, which will be anchored in policyholder protection, financial stability, supervisory convergence and the integrity of the Single Market.

EIOPA publishes a report examining the effect of climate change on life and health insurers and occupational pension providers

On 30 September 2026, EIOPA published a report on the effects of climate change on life and health insurers and occupational pension providers. In the report, extreme heat is identified as the leading climate-related liability risk for the sectors. In addition to heat-related mortality, extreme heat causes more frequent wildfires and increases the potential for the spread of vector-borne diseases such as dengue and malaria, all of which have direct implications for the mortality, morbidity and longevity assumptions that underpin life and health insurance business models.

EIOPA has developed an illustrative risk-scoring framework with a methodology based on hazard, vulnerability and exposure metrics to estimate the impact of extreme heat on different undertakings, lines of business and countries. While the impact will be highly product and portfolio-specific, EIOPA projects that medical expense insurance, income protection insurance and workers' compensation insurance will be the most affected lines of business in the non-life segment. EIOPA has encouraged undertakings to incorporate these risks holistically into their climate risk assessments, as the materiality of the risks is expected to increase over time.

Date published: 7 October 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.