Sylvia Cronin, the Director of Insurance Supervision delivered a speech at the IDA Jurisdictional Insights event on 6 November. The Director spoke about the strength of the Irish framework in the context of insurance authorisation and reflected on the issue of supervisory convergence.
The Director spoke about the impact that Brexit will have on firms that write and/or service cross-border business. She stated that there are a number of ways in which an entity can continue to do business post-Brexit, including: (i) establishing a new subsidiary in an EEA jurisdiction; (ii) establishing a third country branch to service the local market; or (iii) extending the authorisation of an existing EEA entity to take on business currently written in the UK. The Director noted that there has been a substantial increase in the number of applications being received by the Central Bank for each of these options and the Central Bank has taken steps to enable it to process the large number of applications. The Director spoke about the Central Bank’s expectations in relation to risk assessment, governance and control arrangements, and expertise. The Director advised firms on how they can meet the Central Bank’s criteria in their application, which results in a smoother authorisation process.
The Director spoke about supervisory convergence and the Central Bank’s approach of ensuring alignment with European best practice. The Director informed insurers that they should expect to see a continuing supervisory focus on fitness and probity following the approval of their pre-approval controlled functions.
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.