On 23 June 2021, the Central Bank held an insurance industry event with the opening keynote address delivered by Domhnall Cullinan, Director of Insurance at the Central Bank.
Alison Shanley, senior associate: "Mr Cullinan's key note speech, delivered several important messages to the industry around the Central Bank's insurance priorities including:
- effective supervision: focusing on capital adequacy, the integration of the ORSA into firms' business strategies and operational resilience;
- strengthening of its regulatory and supervisory frameworks: including a Recovery Framework which incorporates the already commenced regulations on pre-emptive recovery plans and the IAF which incorporates the SEAR among other things; and
- the future of the insurance sector, "assessing how firms' are evolving their business models and strategy in response to systemic changes" including climate change and digitalisation.
Mr Cullinan noted that the Central Bank's expectation is that "firms identify the risks and opportunities they face over the longer term, and adjust their strategies and business models accordingly" and that in relation to climate change in particular "firms can expect the Central Bank to formally communicate its expectations of them in respect of climate change in the coming months and to further integrate consideration of climate related risks within the supervisory framework"
Separately on the issue of differential pricing Mr Cullinan noted that, findings from the Differential Pricing Review are expected to be published, together with a potential consultation on proposals to further protect consumers, in July this year. We will keep clients updated as this develops."
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