Financial Services Regulation and Compliance - Insurance May 2023

Domestic

Personal Injuries Resolution Board Act 2022 (Commencement of Certain Provisions) Order 2023

As noted in our December Tracker, the Personal Injuries Resolution Board Act 2022 (the PIRB Act) was signed into law on the 13 December 2022. On 29 May 2023, T.D. and Minister of State for Trade Promotion, Digital and Company, Dara Calleary, announced that the second phase of the PIRB Act, amending the application process under the Personal Injuries Assessment Board Act 2003, will take effect from 4 September 2023. For more on the primary changes made by the PIRB Act, please see our December Tracker here.

Responses by Ministers Dara Calleary and Simon Harris to Parliamentary questions on the insurance industry (see here and here)

Minister of State at the Department of Enterprise, Trade and Employment, Dara Calleary, and Minister for Justice, Simon Harris, responses to Parliamentary questions confirming that insurance reforms remain a key priority under the current Programme for Government. In written answers provided on 24 and 25 May, both Ministers highlighted some of the government’s key reforms to date, including:

  • the introduction of new personal injuries legislation and guidelines
  • the establishment of an Office to promote competition in the insurance market
  • the commencement if the Perjury Related Offences Act 2021, which among other things, seeks to tackle false and misleading claims

Looking ahead, the government intends to the enact the Courts and Civil Law (Miscellaneous Provisions) Bill 2022 which it expects will reduce insurance costs by re-balancing the duty of care under the Occupier’s Liability Act 1995.

European

EIOPA publishes Risk Dashboard for Q4 2022 (see here)

On 15 May 2023, the European Insurance and Occupational Pensions Authority (EIOPA) published its Insurance Risk Dashboard based on Solvency II data for Q4 2022. Macro and market risks are expected to remain elevated over the course of 2023. All other risks are at medium level. While digitalisation and cyber risk remained at medium level, publicly available data indicates a slight downward trend in cyber incident frequency has decreased since the same quarter of 2021.

EIOPA publishes technical information update

On 4 May 2023, EIOPA published its monthly technical information regarding the relevant risk-free interest rate term structures with reference to the end of April 2023. This technical information is used for the calculation of technical provisions for (re)insurance obligations. EIOPA published technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of April 2023 on the same date.

CLIMADA App: introductory remarks by EIOPA Chairperson, Petra Hielkema, to the public event on Opening the World of Catastrophe Models (see here)

On 16 May 2023, EIOPA Chairperson, Petra Hielkema, addressed the attendees at the public event on Opening the World of Catastrophe Models. Chairperson Hielkema’s remarks focussed on the challenges faced by insurers in assessing climate-related risks in particular, given the lack of reliable data or methodologies. EIOPA reiterated its commitment to assisting insurers to access, understand and interpret climate-related data. In connection with this objective, EIOPA has the CLIMADA app: a state-of-the-art catastrophe model that provides a user-friendly platform for those seeking to better assess climate-related risks. EIOPA has released the CLIMADA app free of charge and will publish a user guide in due course. 

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

Date published: 15 June 2023