Domestic

The Central Bank (Amendment) Bill 2025 initiated before Dáil Éireann

On 18 February 2025, the Central Bank (Amendment) Bill 2025 (the Bill) was introduced in the Dáil. The Bill, also known as the ‘right to be forgotten’ bill, seeks to amend the Central Bank Act 1942 to prevent financial service providers from engaging in differential treatment of cancer survivors by ensuring that they are not unjustly penalised due to their medical history, once they have reached certain post-treatment milestones.

The proposal mirrors a bill previously presented to the Dáil back in October 2022, but which ultimately lapsed with the dissolution of the Dáil on 29 January 2025.

In the intervening years Insurance Ireland introduced a voluntary code of practice for underwriting mortgage protection insurance for cancer survivors which took effect on 6 December 2023.

The stated purpose of the new private member’s bill is to protect the privacy of cancer survivors by removing the requirement to disclose a cancer diagnosis in applications for financial services once they are five years post treatment and in doing so prevent differential treatment by insurers and intermediaries on the basis of a historical cancer diagnosis.

The Bill is currently before Dáil Éireann in its second stage, where the general principles of the Bill will be debated.

European

EIOPA launches consultation on methods for determining market shares

On 3 February 2025, the European Insurance and Occupational Pensions Authority (EIOPA) launched a public consultation on the proposed revised guidelines on the methods for determining the market share of undertakings that can make use of limited reporting requirements under Solvency II.

Over the past number of years, the practical application of the guidelines has demonstrated the need for review and improvement. The proposed revisions aim to clarify supervisory authorities’ and undertakings’ role in the processing and promotion of exemptions or reduced reporting requirements.

Stakeholders have until 28 April 2025 to provide their feedback.

EIOPA informs policyholders about the liquidation of FWU Life Insurance Luxembourg

On 5 February 2025, EIOPA informed policyholders that, on 31 January 2025, the District Court of Luxembourg decided on the liquidation and dissolution of FWU Life Insurance Luxembourg (FWU Luxembourg). FWU Luxembourg’s parent company has recently cut off all IT access to FWU Luxembourg and to its French, German, Italian and Spanish branches. Pending the resolution of this issue, FWU Luxembourg’s customers are unable to contact the company.

For further updates on the liquidation and payout process, EIOPA recommends that policyholders monitor the websites of the national supervisor (Commissariat aux Assurances, or CAA) and the liquidator of FWU Luxembourg.

EIOPA publishes monthly technical information for Solvency II relevant risk-free interest rate term structures and monthly update of the symmetric adjustment of the equity capital charge

EIOPA published its monthly technical information on 5 February 2025 in relation to the relevant risk-free interest rate term structures with reference to the end of January 2025, for Solvency II purposes. This information is used for the calculation of technical provisions for (re)insurance obligations, and its monthly publication ensures that the calculation of technical provisions across Europe is consistent. EIOPA also published technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of January 2025.

IORPs in Focus - EIOPA’s 2024 Report

Institutions for occupational retirement provision (IORPs) provide occupational retirement schemes offered by employers to their employees. On 11 February 2025, EIOPA published its 2024 IORPs in Focus Report, dealing with the latest developments in the occupational pensions sector market.

The report highlights several key trends and developments:

• As of year end 2023, the number of IORPs decreased by 1.7% compared to 2022. The decline is primarily due to the fact that businesses continue to consolidate their scheme offerings, which sees smaller pension funds merging with larger schemes. Conversely, the number of multi-employer IORPs has increased, pointing to further consolidation and efficiency.
• The total assets under management in the IORP sector rebounded to €2.72tn, up from €2.3tn in 2022.
• There is a notable shift from defined benefit to defined contribution pension schemes. Despite this shift, DB schemes still account for a substantial proportion of assets.
• IORPs predominantly invest in investment funds, which represented nearly 40% of total assets at the end of 2023. Bonds and equities follow, comprising 34% and 17% of assets respectively.
• The IORP II Directive aimed to enhance the integration of the internal market for occupational pension funds. However, progress has been mixed, with cross-border IORPs operating in just eight member states and the total number declining to 28.

EIOPA launches consultation on its opinion on artificial intelligence governance and risk management

EIOPA launched a consultation paper on its opinion on artificial intelligence (AI) governance and risk management on 12 February 2025. The opinion aims to provide supervisors, insurance undertakings and intermediaries with further clarity and guidance on how to interpret and implement insurance sector provisions of the EU AI Act (Regulation (EU) 2024/1689) (the AI Act). The opinion does not cover prohibited AI practices or high-risk AI systems under the AI Act. Additionally, EIOPA confirms that the opinion not set out to extend existing requirements under the AI Act but rather to provide guidance on how relevant legislation and/or requirements should be interpreted in the context of AI systems.

The opinion sets high-level expectations regarding the governance and risk-management principles that insurance undertakings and intermediaries should apply to ensure a responsible use of AI systems, including:

• applying a risk-based and proportional approach in respect of AI systems
• adopting a customer-centric approach to the use of AI systems
• clearly defining the roles and responsibilities of relevant staff to ensure appropriate human oversight
• adopting measures to ensure that the outcomes of AI systems can be meaningfully explained
• implementing sound data governance policies
• maintaining adequate and orderly documentation and records

Stakeholders are invited to provide comments on the consultation paper and the impact assessment of EIOPA’s opinion by responding to questions via an online survey by the submission deadline of 12 May 2025.

EIOPA publishes supervisory statement on the deduction of foreseeable dividends from own funds under Solvency II

EIOPA published a supervisory statement on 20 February 2025 outlining its expectations in relation to the supervision of (re)insurers’ and groups’ deduction of foreseeable dividends from their own funds under Solvency II. The aim of this guidance is to promote greater supervisory convergence and to level the playing field.

European (re)insurers and groups must deduct foreseeable dividends, distribution and charges from own funds because, once foreseeable, they no longer meet the criteria of permanence and availability and lack the loss absorbing capacity. Dividends become foreseeable (at the latest) when they are declared or approved by the administrative, management or supervisory body (AMSB).

Commission Implementing Regulation (EU) 2023/894 on supervisory reporting (the Implementing Regulation) includes a requirement that (re)insurers and groups deduct their annual foreseeable dividend in full.

EIOPA has, however, accepted that there are various approaches being taken, including: the annual full deduction approach, the quarterly accrued deduction approach and the approach where foreseeable dividends are deducted after AMSB approval.

EIOPA is currently reviewing the Implementing Regulation in light of the Solvency II review. In terms of supervisory expectations:

• EIOPA expects supervisory authorities not to prioritise supervisory actions in case an undertaking or group uses the quarterly accrued approach for the deduction of foreseeable dividends.
• The annual full deduction method is a workable option when undertakings or groups operate in a stable and predictable environment, or if there is a history of fixed dividends.
• The deduction of dividends after the formal approval of the AMSB is a reasonable option only in circumstances where there are objective difficulties hindering the estimation of foreseeable dividends.

For more information on these topics please contact any member of A&L Goodbody's Insurance & Reinsurance team.

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.