General
The supervision process for Non-Life Insurance undertakings mirrors the general supervision process of the Central Bank of Ireland.
All Irish authorised financial service providers, whether engaged in international or domestic activities, are expected to implement best practice.
Governance
Undertakings must have systems and policies in place to mitigate risk and monitor compliance with their internal policies.
The role of the Central Bank of Ireland involves oversight of the quality of the institution's corporate governance, risk management and internal control systems.
About the Supervisory Process
Our supervisory process is carried out by way of
- Analysis of returns submitted to the Central Bank of Ireland
- Risk-rating of undertakings
- Themed inspections across the non-life insurance industry
- Annual review meetings with individual non-life insurance undertakings
- Regular correspondence and engagement with undertakings under our supervision
Non-Life Insurance: Regulatory Requirements
The Central Bank of Ireland is responsible for consumer protection issues.
There are further regulatory requirements in respect of Consumer Protection, Fitness & Probity, Minimum Competency and Conduct of Business.
The basic requirements of each and their application in respect of non-life insurance undertakings are outlined below.
Prior Prudential Assessment of Acquisitions and Increases in Qualifying Shareholdings
Before certain acquiring transactions for a non-life insurance undertaking are completed or before an existing shareholder increases his/her/its shareholding past one of the prescribed percentages, e.g. 20%; 33% or 50%, the Central Bank of Ireland must receive prior notification.
An 
Acquiring Transaction Notification Form must be completed and submitted to the Central Bank of Ireland for prior prudential assessment before such a transaction is completed.
For further information regarding the prudential assessment process please note the following:
‘Guidelines for the Prudential Assessment of Acquisitions and increases in holdings in the financial sector required by Directive 2007/44/EC’, which was jointly published by the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) on 18 December 2008.
It is important in this regard to note that acquiring transactions and increases in qualifying shareholdings, if completed without prior notification to, or assessment by, the Central Bank of Ireland will not have legal validity in Ireland.
Consumer Section - General
The supervision of conduct of business for life insurance companies is concerned mainly with the sales process, provision of information to consumers and complaints handling.
This aspect of supervision of life insurance companies is carried out by the Consumer Protection Codes Department.
Consumer Protection Code
The Consumer Protection Code was fully implemented in July 2007.
The Code is a set of general principles and detailed requirements covering many aspects of a financial services provider’s relationship with a consumer such as:
- Providing financial products and services to consumers;
- Giving information and advice to consumers;
- Advertising financial products and services; and
- Handling complaints.
View The Consumer Protection Code
Fitness & Probity
A sound and effective fit and proper test is a critical component of the regulatory regime.
To ensure the proper discharge of their responsibilities, it is important that Directors and Managers have the skills to manage a non-life insurance undertaking.
“Fitness” requires that a person appointed as a Director or Manager has the necessary qualifications, skills and experience to perform the duties of that position. “Probity” requires that a person is honest, fair and ethical.
Before being appointed, a new Director or Manager of a non-life insurance undertaking must demonstrate that he/she meets the required fit and proper standards. The “fit and proper test” involves the completion of an Individual Questionnaire (IQ) by the applicant.
More information on the ‘Fit & Proper’ test.
Minimum Competency Requirements
These requirements are designed to establish minimum standards across all financial services providers from which consumers seek advice on, or seek to purchase, retail financial products.
Generally speaking, such individuals are the customer-facing staff i.e. sales staff.
The types of non-life insurance products that these requirements are applicable to are non-life insurance policies in Classes 1 to 18 as outlined in the FAQ section. This would include home, motor, travel and liability policies.
Visit the Minimum Competency Requirements section for more infomation.
Conduct of business supervisory process
The Central Bank of Ireland monitors compliance with the Consumer Protection Code and other conduct of business requirements by way of:
- Advertising monitoring
- Consumer complaints
- Themed inspections
- General inspections
- Mystery shopping