Domestic

CBI publishes Insurance Quarterly Newsletter - Q1 2025

On 25 March 2025, the Central Bank of Ireland (CBI) published its Insurance Quarterly Newsletter for Q1 2025 (the newsletter), highlighting news, developments and future dates/events of note for the (re)insurance sector. The newsletter addresses a range of topics, including:

• the publication of the CBI’s Regulatory & Supervisory Outlook report
• the CBI’s revised approach to supervision
• a reminder that the CBI’s dedicated Fitness and Probity Unit was established in December 2024
• the publication of the CBI’s annual report on demographics of the financial sector

The newsletter coincides with the publication by the CBI of the modernised Consumer Protection Code (the Code) following a comprehensive review of the existing code (the Consumer Protection Code 2012), and engagement with consumer and industry stakeholders. The provisions of the Code, which will apply from March 2026, following a twelve-month implementation period, set out the business standards that (re)insurers and (re)insurance undertakings must follow when dealing with consumers.

CBI publishes insurance corporations statistics - Q4 2024

The CBI released its insurance corporation statistics for Q4 2024 on 5 March 2025. These statistics are based off the balance sheet data provided by Irish insurance corporations (ICs), which includes companies directly providing insurance or reinsurance. Key statistics to note include:

• Total assets held by ICs increased by €9bn during Q4 2024 and now stand at €461bn. The growth was driven primarily by a combined increase of €14.8 billion in holdings of investment funds, equity and debt securities.
• Total unit linked life insurance technical reserves (ITRs) increased by €15bn during Q4 2024. This drove an increase in ICs’ liabilities.
• Holdings of Government Debt securities stood at €37bn in Q4 2024.

CBI Report: Employers’ Liability, Public Liability and Commercial Property Markets

The CBI has published its third National Claims Information Database (NCID) Employers’ Liability, Public Liability and Commercial Property Insurance Report (the report). The report, which analyses data up to year-end 2023, aims to improve transparency in the insurance claims environment.

The report flags the high inflationary environment and the adoption of the personal injuries guidelines from April 2021 as important factors to consider in contexualising its findings.

The report indicates greater stability in employers’ liability, public liability and commercial property markets. However, it is noted that increasing litigation costs remains an ongoing concern.

Moyagh Murdock, CEO of Insurance Ireland, commented that seeing these the employers’ liability, public liability and commercial property markets “stabilise after sustained periods of losses and volatility” was positive, but noted it was disappointing to see the very high level of claims turning to litigation.

Insurance Ireland believe that continued positive trends in this area will be central to ensuring the Irish market can attract new players to the benefit of businesses and consumers.

Financial Services and Pensions Ombudsman publishes Overview of Complaints 2024

The Ombudsman for Financial Services and Pensions, Liam Sloyan, has published his overview of complaints for 2024, detailing the activities of the Office of the Financial Services and Pensions Ombudsman (FSPO) in 2024.

The FSPO received 1,818 insurance-related complaints in 2024. This is a 26% increase from the 1,446 insurance-related complaints in 2023. Insurance complaints account for 29% of all complaints received in 2024, an increase of six percentage points from 2023. The largest number of insurance complaints received related to motor insurance (754 complaints), followed by private health insurance (247 complaints) and then travel insurance (216 complaints).

27% of complaints related to claims handling while claim rejection, maladministration, customer service and refusal to provide a product/service were also among the top five forms of conduct that were the subject of complaints in 2024.

European

EIOPA publishes technical advice on standard formula capital requirements for crypto assets

The European Insurance and Occupational Pensions Authority (EIOPA) issued its final technical advice on standard formula capital requirements for investments in crypto assets within the Solvency II regime on 27 March 2025. This follows EIOPA’s draft technical advice, issued in October 2024, in response to the European Commission’s call for advice in light of proposed Solvency II amendments which would allow the EC to pass Delegated Acts that better reflect crypto-asset risks. EIOPA’s final advice explains the current prudential treatment of investments in crypto-assets and ultimately proposes a 100% haircut to insurers’ crypto assets regardless of their balance sheet treatment and investment structure.  

EIOPA Peer Review: Stochastic Valuation

On 5 March 2025, EIOPA published the results of its peer review on the on the supervision of the stochastic valuation method under the Solvency II Directive. The peer review addressed the supervision of stochastic valuation for products with options and guarantees and was therefore focused on life insurance.

Among EIOPA’s findings, it recommends actions and best practices to support National Competent Authorities (NCAs) in their supervision. These include improving the identification of options and guarantees, developing national guidance and implementing supervisory activities related to stochastic valuation. In its next update of its Supervisory Handbook, EIOPA expects to update the stochastic valuation section to include the key findings and guidance arising from its peer review.

EIOPA also commented that stochastic valuation, although often highly complex, is increasingly being used by (re)insurers as the technology required to support it grows in availability.

EIOPA publishes monthly technical information for Solvency II

EIOPA published its monthly technical information on 5 March 2025 regarding the relevant risk-free interest rate term structures (RFR), with reference to the end of February 2025, for Solvency II purposes. This technical information is used for the calculation of technical provisions for (re)insurance obligations. On the same date, as is usual, EIOPA also published technical information on the symmetric adjustment of the equity capital charge under Solvency II with reference to the end of February 2025.

On 31 March 2025, EIOPA also published the ultimate forward rate (UFR) for 2026. For the euro, the applicable UFR remains unchanged at 3.30%.

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.