Financial Services & Regulation Bulletin - Insurance May 2019
Deputy Governor of the CBI delivers speech at the Insurance Ireland annual lunch
On 8 May 2019, Ed Sibley, Deputy Governor of Prudential Regulation, delivered a speech to the Insurance Ireland Annual Lunch. Topics addressed included (among other matters):
- challenges in the domestic non-life insurance market and their impact on business and consumers
- common issues across insurance firms, including Brexit, the need to improve the management of IT and outsourcing
- gender diversity
- longer term risks and challenges facing the insurance sector, including climate change, demographics and technology risk
CBI publishes latest edition of the Intermediary Times
On 31 May 2019, the CBI published the latest edition of its Intermediary Times newsletter. This edition covers a range of topics including (among other matters):
- an update on Brexit contingency planning; intermediaries' obligations under the Fitness & Probity Regime
- the requirement to file a Retail Intermediary Annual Return
- the need for Investment Firms to review their authorisations under the Investment Intermediaries Act as a result of the introduction of the European Union (Insurance Distribution) Regulations 2018
European Insurance and Occupational Pensions Authority (EIOPA) submits advice on Sustainable Finance to the European Commission
On 3 May, EIOPA published its advice to the European Commission on sustainability in the areas of risk management, investment strategy, stewardship and product oversight. EIOPA supports the incorporation of sustainability considerations in the delegated regulations under Solvency II and the Insurance Distribution Directive (IDD). This will encourage (re)insurers and distributors to reflect on the impact of their investments on sustainability. EIOPA also calls for environmental, social and governance considerations to be included in the IDD implementing rules on product oversight and governance and the rules on conflicts of interest. The advice was published following stakeholder consultations held earlier this year.
EIOPA report on insurers' use of Big Data Analytics (BDA)
On 8 May 2019, EIOPA published a report on the use of BDA in motor and health insurance. The report is the result of a thematic review aimed to gather empirical evidence on the benefits and risks arising from the use of BDA by insurers. Evidence gathered shows that there are many opportunities for both consumers and insurers. However there are also risks that need to be addressed further. This is particularly the case in relation to fair usage of BDA and the accuracy, transparency and auditability of BDA tools. EIOPA's InsurTech Task Force will conduct further work in these areas in 2019.
The IDD – European Commission adopts Delegated Regulation
On 13 May 2019, the European Commission adopted Commission Delegated Regulation (C(2019) 3448 final) amending the IDD in relation to regulatory technical standards adapting the base euro amounts for professional indemnity insurance and for financial capacity of insurance and reinsurance intermediaries. This Commission Delegated Regulation has not yet entered into force and is subject to the right of the European Parliament and of the Council to express objections, in accordance with Article 290(2) of the Treaty on the Functioning of the European Union.
For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 7 June 2019