European Union: Insurance Regulatory Update – August 2017

Last Updated: 11 September 2017
Article by Elizabeth Bothwell and Jennifer McCarthy


On 25 August 2017, the European Union (Insurance and Reinsurance) (Amendment) Regulations 2017 [S.I. No. 384 of 2017] (the Regulations) were published. The Regulations make certain amendments to the European Union (Insurance and Reinsurance) Regulations 2015 [S.I. No. 485 of 2015] (the 2015 Regulations) and the Insurance Act 1989 in order to more accurately reflect the Solvency II Directive.

The main provisions of the Regulations are as follows:

  • Removing third country reinsurance providers from the scope of the 2015 Regulations, so long as they only carry out reinsurance activities in Ireland;
  • Reinsurers with a head office located in Ireland who wish to transfer their portfolio to another undertaking will now require approval from the Central Bank;
  • The Regulations amend the conditions of authorisation for third-country insurance undertakings operating a branch in Ireland under Regulation 176 of the 2015 Regulations. The amendments grant the Central Bank the power to impose, vary and revoke the conditions of authorisation with respect to the conduct of insurance business by the third country branch to ensure that the branch meets its responsibilities and obligations under the 2015 Regulations; and
  • Insurance holding companies or mixed financial holding companies will have to notify the Central Bank under a new notification regime where there is a change in the identity of the persons effectively running the insurance holding company or mixed financial holding company under Regulation 261 of the 2015 Regulations. The notification should include all information required by the Central Bank to assess whether the person appointed are fit and proper to perform their duties, and must be made within 5 working days of their appointment. It is no longer an offence for an insurance holding company or mixed financial holding company to breach its obligations under the fit and proper notification regime without reasonable cause. However, such appointment, which has not been notified will be void.
  • The Regulation also dis-applies the provisions of Section 14 and 15 of the Insurance Act 1989 to any insurer to which the 2015 Regulations apply, other than (re)insurers caught by Regulation 11 of the 2015
  • Regulations. Section 14 deals with the separation of assets and liabilities when accounting for life assurance business and Section 15 provides for the manner in which assets of undertakings transacting life assurance business are to be applied.

The Regulations are effective immediately.

The Regulations are here.


The Central Bank and Financial Services Authority of Ireland (Amendment) Act 2017 (the

Amendment Act) have come into force. The amendments introduced by the Amendment Act apply to life insurance products and to long term financial service products that last for five years and one month or more. The Amendment Act extends the six year time limits in respect of long term financial services products to six years from the date of the conduct complained of, or three years from the date the complainant became aware of the conduct, or such longer period as the FSO may allow.

Under the Amendment Act the FSO is obliged to, where possible, resolve complaints by way of mediation. The Amendment Act also extends the time limit for appealing a finding of the FSO to the High Court from 21 to 35 days after the date of notification of the finding.

The Financial Services and Pensions Ombudsman Act 2017 (the FSPO Act) was also enacted last month but has not yet come into force. Once commenced, the FSPO Act will amalgamate the office of the FSO and the Pensions Ombudsman and will, in effect, replace the Amendment Act.

The Amendment Act 2017 is here. The FSPO Act is here.


On 14 August, the Data Protection Commissioner published guidance on the appropriate level of qualification and expert knowledge that a DPO is expected to have in order to comply with Article 37.5 of the GDPR.

The GDPR does not prescribe the professional qualities or the training that a DPO is expected to have undergone to be qualified for the role. However, according to the Data

Protection Commissioner relevant skills and expertise include: expertise in national and european data protection laws and practices including an in-depth understanding of the GDPR; understanding of the processing operations carried out; understanding of information technologies and data security; knowledge of the business sector and the organisation; and ability to promote a data protection culture within the organisation. While many insurers already have DPO's in place, insurers should review the current job specifications of their organisation's DPO to consider whether they are appropriate in light of the Data Protection Commissioners guidance and the minimum duties of a DPO contained in the GDPR.

In assessing the level of qualification and training required for their DPO, the Data Protection Commissioner encourages organisations to be aware of the various training options that may be pursued. It recommends that the following factors be taken into account when selecting the appropriate DPO training programme: the content and means of the training and assessment; whether training leading to certification is required; the standing of the accrediting body; and whether the training and certification is recognised internationally.

The Data Protection Commissioner's guidance is here.


On 8 August, the Central Bank published its performance report on regulatory service standards for the first half of 2017 (the Report). The Report contains information on the Central Bank's performance for the first half of 2017 in meeting the timeframe deadlines it has set for the authorisation process.

96% of the Service Standards covering most sectors were met or exceeded by the Central Bank during the period. Six complete applications for (re)insurance undertakings were processed during the period. Six applications were returned for being incomplete, 83% of these applications were returned within a 2 week period.

In all cases the Central Bank's target Fitness and Probity Standards were met. The Central Bank also noted that the PCF applications relating to the authorisation process take precedent over other PCF applications under the Central Bank's Fitness and Probity regime.

The Central Bank's press release is here.

The Central Bank's report is here.



The European Commission has launched a public consultation under its Regulatory Fitness and Performance programme (REFIT) to review the compulsory motor insurance regime put in place by Directive 2009/103/EC of the European Parliament and of the Council of 16 September 2009 relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to insure against such liability (the Motor Insurance Directive).

The Motor Insurance Directive ensures the protection of road traffic victims across the EU by allowing insurance for third party liability in one EU member state to apply across the EU without the need for any further administrative formalities.

The REFIT evaluation will focus mainly on the following topics:

  • Portability of claims history statements;
  • Possible guarantees towards victims in cases of insurers' insolvency;
  • Minimum cover amounts;
  • Insurance checks;
  • Terminology;
  • Scope of the Motor Insurance Directive;
  • Autonomous cars; and
  • Transfer of vehicles.

The consultation follows the publication of an Inception Impact Assessment on the REFIT evaluation of the Motor Insurance Directive on 24 July 2017.

The purpose of the consultation is to gather input from all relevant stakeholders. As such, the Commission's evaluation questionnaire is split into two sections, one for consumer responses and the other for companies and institutions involved in the industry.

In response to the launch of the Commissions REFIT evaluation, Insurance Europe and the Council of Bureaux have issued a statement emphasising the benefits of the current system. The statement also calls into question the merits and feasibility of market standardisation across the EU regarding claims history statements and focuses on the particular disadvantages associated with an EU-wide guarantee scheme for insolvent insurers.

The consultation closes on 20 October 2017 and appropriate responses will feed into the Commission's legislative proposal to amend the Motor Insurance Directive.

The Inception Impact Assessment is here.

The Commission's evaluation questionnaires are here.

The statement from Insurance Europe and the Council of Bureaux is here.


On 18 August, the ESAs published a further Q&A document in respect of the regulatory technical standards (RTS) laid down in Commission Delegated Regulation 2017/653. The Q&A document consolidates the questions and answers published in the first Q&A document published on 4 July and addresses additional questions in relation to market and credit risk assessment, the summary risk indicator, performance scenarios, derivatives and methodology for calculating cost.

The ESAs have also published an explanatory diagram summarising the methodology and the processes to be used to determine the relevant risk indicators, performance scenarios and costs associated with a PRIIP. The Q&A follows Insurance Europe's call for level 3 clarification of the PRIIPs provisions.

The ESAs' Q&A documents and

explanatory diagrams are here.

INSURANCE EUROPE PUBLISHES POSITION ON PRIIPs REGULATORY TECHNICAL STANDARDS (RTS) Insurance Europe has called for greater clarity regarding the implementation of the RTS for the packed retail investment and insurance products (PRIIPs) regulation as set out in Delegated Regulation 2017/653. In its recently published position paper, it lists several technical issues in the application of the RTS that require further explanation in the level 3 guidance. However, Insurance Europe feels the next round of Q&A produced by the ESAs should clarify a number of specific key points, in order to give legal certainty to the industry to comply with PRIIPs. Those are:

  • Transaction Costs – the cost methodology in the RTS is too burdensome for insurers whose transaction costs are usually low due to their 'buy and hold' strategy and whose portfolio of assets are more diversified than the portfolio of a regular funds. Insurance Europe posits that a proportional method that allows a quantification of transaction costs per asset class as a whole would be preferable. Also, the current cost methodology is unsuited to insurance products, because for some assets, historical data is not available and for alternative investments the RTS does not provide a methodology at all;
  • Specific Information for multi-option products (MOPs) – the information contained in the generic key information document (KID) should cover the overall product, whereas, Insurance Europe feel the information and indications
  • for the underlying option should relate to that option only and not be aggregated to include information about the overall PRIIP. The current drafting of the RTS is not clear on this point;
  • Recommended holding periods ("RHP") for MOPs within certain MOPs the underlying investment option is meant to be held for the entire RHP. Insurance Europe recommends building in flexibility to allow holding periods of underlying options in the specific information KID to be adjusted to the holding period of the overall MOP, or for certain products to use different holding periods; and
  • Treatment of Annuities – it needs to be clarified how the RTS will apply to annuities that fall within the scope of the PRIIPs regulation.

Insurance Europe's position paper is here .


On 15 August 2017, European Commission published a corrigendum to Commission Delegated Regulation 2017/653 on PRIIPs. The corrigendum amends and substitutes Table 1 'costs over

time' at Annex VII, to make it clear that total costs are not required to be presented as a percentage.

The corrigendum is here.


The European Commission has published an Implementing Regulation (EU) 2017/1469) setting out a standardised presentation format for the insurance product information document (IPID) under the Insurance Distribution Directive (EU) 2016/297).

The aim of the standardised IPID is to provide consumers with product information that is easy to read, understand and compare. The Regulation prescribes the format of the IPID and includes specific provisions relating to the manner in which the following are presented. The name and company logo of the manufacturer and the requirement to state that complete pre-contractual and contractual information about the product is provided elsewhere. There are also specific rules regarding: length of the IPID, the information required to be included under the prescribed headings, the presentation and order of content, the use of plain language and the use of icons.

The Regulation is based on the draft implementing technical standards submitted by EIOPA, who have conducted consumer testing, consulted national authorities, conducted open public consultation and have also requested the opinion of the Insurance and Reinsurance Stakeholder Group.

The implementing regulation will enter into force on 1 September 2017.

A link to the implementing regulation is here.


On 21 August, Insurance Europe published their response to the European Commission's call for evidence on how collective redress arrangements concerning violations of rights granted under EU law are being implemented in Member States. In June 2013, the Commission issued a recommendation (the Recommendation) for injunctive relief and compensatory collective redress schemes in Member States where EU law gives rights to natural and legal persons. The aim of the Recommendation was to provide access to justice in cases where two or more natural or legal persons claim to have suffered damage while also providing appropriate safeguards to prevent abusive litigation. Insurance Europe is of the opinion that too little time has elapsed since the Recommendation to suitably assess its implementation and determine whether or not there is the need for further legislative action. Insurance Europe acknowledges that the safeguards introduced in the Recommendation are a step in the right direction, if implemented correctly and encourages the introduction of further safeguards in relation to third party funding and supports the use of alternative dispute resolution mechanisms. Insurance Europe's response is here.


On 2 August, Commission Implementing Regulation 2017/1421 laying down information for the calculation of technical provisions and basic own funds for reporting with reference dates from 30 June until 29 September 2017 under the Solvency II Directive was published to the Official Journal. It entered into force on 6 August but applies from 30 June.

The Commission Implementing Regulation is here.


On 1 August, the International Association of Insurance Supervisors (IAIS) launched a public consultation on a draft revision of ICP 24 – Macroprudential Surveillance and Insurance Supervision.

The ICP system is made up of Insurance Core Principles that provide a globally accepted framework for the regulation and supervision of the insurance sector. The consultation is part of IAIS's current three-year cycle for reviewing its approach to systemic risk assessment, which is scheduled to finish in 2019.

Comments are due by 1 October 2017.

Comments can be submitted here.


Insurance Europe has responded to the International Association of Insurance Supervisors (IAIS) public consultation on revisions to Insurance Core Principle (ICP) 13 – Reinsurance and Other Forms of Risk Transfer.

While Insurance Europe welcomed the proposed changes as mostly positive, it asked for clarification on several points and urged the IAIS not to be overly prescriptive in certain provisions of the ICP. Insurance Europe commended the acknowledgement of geographical diversification, a key element of the reinsurance business model, in the introductory guidance, but noted that the regulatory framework must grant cedants sufficient flexibility in the implementation of its risk policy.

Insurance Europe's comments are here.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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
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
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.