Ireland: Insurance Quarterly Legal And Regulatory Update: 1 January 2016 - 31 March 2016


Solvency II

(i) Solvency II comes into force

On 1 January 2016, Solvency II came into force. The Solvency II regime comprises different levels of national and European legislation. The Solvency II Directive (2009/138/EC) and the relevant Solvency II provisions in the Omnibus II Directive (2014/51/EU) were transposed into Irish law by the European Union (Insurance and Reinsurance) Regulations 2015 (S.I. 545/2015). The Irish Solvency II regime is supplemented by Commission Delegated Regulation 2015/35/EU and various Commission Implementing Regulations. EIOPA has published Guidelines which provide further guidance on various areas of Solvency II. The Central Bank confirms that it intends to comply with the EIOPA Guidelines and incorporate them into its supervisory practices and in turn expects (re)insurance companies to comply with any relevant Guidelines. The Central Bank has also updated and/or issued guidance and requirements for (re)insurance companies subject to Solvency II.

Details of legislation, requirements and guidance applicable to Solvency II (re)insurance companies can be found on the Central Bank website:

On 4 January 2016, EIOPA published a press release on Solvency II going live and announced that it has a new 'Solvency II – Going Live!' webpage which explains the changes to the public.

This webpage can be accessed via the following link:

(ii) EIOPA publishes Solvency II relevant risk-free interest rate term structures

On 8 January 2016, EIOPA published the first Solvency II relevant risk-free interest rate term structures. This technical information is used for the calculation of the technical provisions for (re)insurance obligations. EIOPA intends to publish the risk-free interest rate term structure on a monthly basis to ensure consistent calculation of technical provisions across the EU resulting in increased supervisory convergence for the benefit of the European insurance policyholders.

On 5 February 2016, EIOPA published the technical information for January 2016 and on 7 March 2016, the technical information for February 2016 was published.

Undertakings should note that EIOPA have stated on their website that, in certain circumstances, it may be necessary to amend and/or republish the technical information after it has been published.

EIOPA's background material and the monthly technical information on the relevant risk-free interest rate term structures can be accessed via the following link:

(iii) EIOPA publishes Opinion on the application of a combination of methods to the group solvency calculation

On 27 January 2016, EIOPA published an Opinion on the application of a combination of methods to the group solvency calculation (the "Opinion"). Under Solvency II, group solvency can be calculated by using the consolidation-based method ("Method 1") or the deduction and aggregation method ("Method 2") or a combination of Method 1 and Method 2. Supervisory approval is required where the (re)insurance group wishes to apply Method 2 or a combination of methods. This Opinion intends to provide clarity and recommendations on issues relating to the application of the combination of methods and covers such matters as how the methods should be applied if a combination of methods is to be used, considerations for the group supervisor when making the decision to allow a combination of methods and the need to allow specific solutions where a combination of methods is permitted so as to avoid unjustified disadvantages for those groups exclusively applying Method 1.

EIOPA states it will monitor the developments of the issues addressed in the Opinion and, if appropriate, will review it accordingly.

EIOPA's Opinion may be accessed via the following link: opinion_combination of methods.pdf

(iv) Central Bank Guidance on In-Situ Pre-Approval Controlled Functions (PCFs): Notification of In-Situ and Confirmation of Due Diligence undertaken

On 27 January 2016, the Central Bank published guidance on the Head of Actuarial Function (PCF – 48) ("HoAF") In- Situ Notification and Confirmation of due diligence undertaken process (the "Guidance"). An individual in-situ in the role of HoAF as at 31 December 2015 may continue in that position and is not required to seek the approval of the Central Bank to continue to perform that PCF-48. However, regulated entities are required to notify the Central Bank of any such individuals and must confirm that the required due diligence has been undertaken in respect of those individuals.

The Guidance sets out how regulated entities can comply with these requirements by providing guidance on how to complete and save the PCF-48 Information file and how to complete the submission on the Central Bank's Online Reporting System ("ONR").

The Guidance notes that the In-Situ Return will only be available from 1 February 2016 to 31 May 2016. Where the In-Situ Return is not submitted to the Central Bank within that timeframe, the individuals will be deemed to not hold the PCF-48 role and the regulated entity will have to formally apply to the Central Bank (through the online individual questionnaire process) for the individual to be approved to the role.

Information on this In-Situ Return, the Guidance and the PCF-48 Information file template can be found at the following link:

(v) Solvency II Commission Implementing Regulation ((EU) 2016/165) published in the Official Journal of the EU

On 9 February 2016, Commission Implementing Regulation (EU) 2016/165 of 5 February 2016 laying down technical information for the calculation of technical provisions and basic own funds for reporting with reference dates from 1 January until 30 March 2016 in accordance with the Solvency II Directive (2009/138/EC) (the "Commission Implementing Regulation") was published in the Official Journal of the EU.

For prudential reasons, it is necessary for (re)insurance companies to use the same technical information for the calculation of technical provisions and basic own funds for reporting irrespective of the date on which they report to their competent authorities and this Commission Implementing Regulation provides that (re)insurance companies must use the technical information on relevant risk-free interest rate term structures, fundamental spreads for the calculation of the matching adjustment and volatility adjustments referred to in Article 1 (2) when calculating technical provisions and basic own funds for reporting with reference dates from 1 January until 30 March 2016.

In order to ensure uniform conditions for the calculation of technical provisions and basic own funds by (re)insurance undertakings, this Commission Implementing Regulation states in the recitals that this technical information should be laid down for every reference date.

This Commission Implementing Regulation entered into force on 10 February 2016, applies from 1 January 2016 and is binding in its entirety and directly applicable in all Member States.

To view the full article please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions