Financial Services Regulation & Compliance - Insurance August 2018
Central Bank of Ireland (CBI) publishes further consultation on non-life renewals
In November 2017, the CBI consulted on proposed amendments to the Non-Life Insurance (Provision of Information) (Renewal of Policy of Insurance) Regulations 2007 (the 2007 Regulations) including those which had been recommended by the Cost of Insurance Working Group. On 3 August 2018, the CBI published a further consultation paper on a Department of Finance proposal requiring renewal notices to state the premium paid by the policyholder for the previous year. Feedback from its earlier consultation has also been included in the paper. Notably, the paper confirms that the CBI intends to recommend increasing the notice period for renewal notifications from 15 to 20 working days for all classes of non-life insurance covered by the 2007 Regulations.
Cost of Insurance Working Group publishes latest quarterly update
The Cost of Insurance Working Group (CIWG) published its sixth quarterly update in August covering the second quarter of 2018. This latest update reports on progress in implementing the recommendations contained in both the Report on the Cost of Motor Insurance and the Report on the Cost of Employer and Public Liability Insurance. According to the update, significant progress has been made in establishing a national claims information database with the recently published Central Bank (National Claims Information Database) Bill 2018. The update also highlights significant progress in relation to engagement and co-operation between the insurance industry and policing authorities in relation to insurance fraud since the creation of the 'Fraud Roundtable'.
CBI publishes special IDD edition of Intermediary Times
On 15 August 2018, the CBI published a special edition of the Intermediary Times covering the Insurance Distribution Directive (IDD) and its transposition into Irish law. The publication draws attention to key IDD requirements including those relating to intermediary and employee remuneration, cross-selling, product oversight and governance, insurance-based investment products and tied agents.
EIOPA publishes report on cyber risk insurance
On 2 August 2018, the EIOPA published a report on cyber risk insurance based on a survey of 13 European (re)insurance groups. Although based on a limited sample, the report provides useful insights on cyber risk and calls for a deeper level of understanding of cyber risk in the European market.
European Commission calls for technical advice on sustainable finance
On 1 August 2018, the European Commission (the Commission) published a letter to EIOPA and the European Securities and Markets Authority (ESMA) calling for technical advice on the package of legislative proposals on sustainable finance adopted by the Commission in May 2018. In an insurance context, EIOPA has been requested to provide technical advice on potential amendments to delegated acts or new level 2 measures under the Solvency II Directive and IDD in order to explicitly require the integration of sustainability risks within their organisations and business models. EIOPA and ESMA have been requested to provide their advice by 30 April 2019.
Insurance Europe publishes response to IAIS consultation on the composition and role of boards
Insurance Europe has published its response to a consultation paper issued by the International Association of Insurance Supervisors (IAIS) in June on the composition and roles of boards. Whilst Insurance Europe has broadly welcomed the paper, it believes that some of the measures proposed by the IAIS are overly intrusive. Insurance Europe is, in particular, critical of the proposed option for supervisors to attend board meetings in certain circumstances.
For further information please contact a member of the Financial Regulation team.
Date Published: 7 September 2018