Launch of Irish Motor Insurance Database (see here)
On 24 May 2024, the Department of Justice formally launched the Irish Motor Insurance Database (IMID). The IMID allows An Garda Síochána to confirm whether a vehicle is insured and/or taxed and whether a driver is disqualified in seconds by using a specialised Garda app. The IMID relies on data from the Motor Insurance Bureau of Ireland and provides Gardaí with the insurance details of over three million vehicles and five million drivers. Speaking at the launch, Minister of State Neale Richmond welcomed the initiative, noting that it would make roads safer for all.
Motor Insurance Insolvency Compensation Bill commences formal legislative process (see here)
The Motor Insurance Insolvency Compensation Bill (the MIICB) was tabled in Dáil Eireann on 30 May 2024. The changes seek to provide access to a compensation mechanism for victims of road traffic accidents where the relevant insurer is insolvent.
As noted in the January tracker bulletin, the MIICB was a legislative priority for the Government given the implementation date for the underlying EU directive provisions (Articles 10a and 25a of the revised EU Motor Insurance Directive (2009/103/EC) (as amended by Directive (EU) 2021/2118)) was 31 December 2023.
EIOPA issues draft RTS adapting base euro amounts (see here)
Under the Insurance Distribution Directive (IDD), insurance and reinsurance intermediaries must hold a specific amount of professional indemnity insurance or some other guarantee against liability resulting from professional negligence. EIOPA regularly reviews the base amounts for professional indemnity insurance to reflect changes to the European index of consumer prices. On 2 May 2024, EIOPA published a draft of the revised technical standards (RTS) which will increase the base amounts under the RTS to reflect an increase in the European index. The proposed changes will increase the required cover in relation to each claim from €1,300,380 to €1,564,610 and, in relation to the aggregate for all claims, from €1,924,560 to €2,315,610. The European Commission Delegated Regulation amending the current RTS will apply from 9 October 2024 and will also be reflected in amendments to Regulation 21 of the European Union (Insurance Distribution) Regulations 2018.
EIOPA’s monthly technical information for Solvency II (see here and here)
EIOPA published its monthly technical information on 6 May in relation to the relevant risk-free interest rate term structures with reference to the end of April 2024, for Solvency II purposes. This information is used for the calculation of technical provisions for (re)insurance obligations. On the same date, EIOPA also published technical information on the symmetric adjustment of the equity capital charge under Solvency II with reference to the end of April 2024.
European Commission seeks EIOPA’s advice on Solvency II Review (see here)
The European Commission issued a request for advice to EIOPA on 8 May regarding the review of specific items in the Solvency II Delegated Regulation (EU) 2015/35. This relates to:
EIOPA is requested to provide technical advice on (a) and (b) by 31 January 2025 and technical advice on (c) by 30 June 2025.
EIOPA Insurance Risk Dashboard (see here or link to dashboard here)
EIOPA published its Insurance Risk Dashboard (the dashboard) based on Solvency II data for Q4 2023 on 14 May 2024. The dashboard aims to illustrate the principal risks in the EU insurance sector through data gathered from insurance groups and undertakings within the EU. The dashboard covers a wide range of risks from credit to ESG-related risks.
The dashboard shows that risks are currently stable in the EU's insurance sector. However, there are weaknesses arising from uncertainty in the market including possible risks in the real estate sector due to declining commercial real estate prices in the first half of 2023. Premium growth has been positive in both the life and non-life sectors.
EIOPA peer reviews the Prudent Person Principle (see here or full peer review here)
The European Insurance and Occupational Pensions Authority (EIOPA) has published the results of its peer review on the supervision of the Prudent Person Principle (PPP) under Solvency II. The PPP requires (re)insurance companies in the EU to only invest in assets whose risks they fully understand, can monitor, and can manage to ensure the best interests of policyholders.
Even though the PPP applies to all investments, EIOPA decided to focus on complex and non-traditional investments. It issued 49 recommendations to 22 National Competent Authorities (NCAs). These included actions relating to:
EIOPA will monitor NCA compliance with the recommended actions going forward.
For more information on these topics please contact any member of A&L Goodbody's Insurance & Reinsurance team.
Date published: 27 June 2024
