The Central Bank of Ireland (CBI) has published its Insurance Newsletter for September 2022. A few key highlights below.
Sustainable insurance - the CBI makes a number of observations for (re)insurers following its thematic review of a sample of ORSAs in relation to climate change risk. Three main observations for (re)insurers:
- Take a holistic approach to climate change risk to better understand risks to the business, secondary impacts, materiality and areas of further focus;
- Consider impacts of climate change to the business model beyond the short term; and
- Link climate change risk assessments to strategy, in order to manage or mitigate risks rather than simply monitoring them.
Outsourcing - a thematic inspection of governance and oversight controls for underwriting Managing General Agents revealed a number of shortcomings. Examples of those shortcomings include governance of those arrangements not being carried out at board level and/or oversight by teams who are part of a wider group based outside of Ireland. Many of the findings are relevant to the wider industry and outsourcing arrangements generally.
Digitalisation - the CBI intends to issue a survey on this topic to a sample of (re)insurance undertakings in Q4 2022.
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.