ARTICLE
30 September 2022

CBI Highlights Under-insurance In Home Insurance Market

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The Central Bank of Ireland (CBI) has written to insurers to highlight the risk of under-insurance in the home insurance market, in light of the impact of inflation on construction costs.
Ireland Insurance

The Central Bank of Ireland (CBI) has written to insurers to highlight the risk of under-insurance in the home insurance market, in light of the impact of inflation on construction costs.

The CBI's review of the home insurance market identified shortcomings in two areas:

  • clarity, consistency and timeliness of communication with consumers, and
  • the effectiveness of risk management tools in identifying and assessing risk to consumers.

The CBI also outlined its supervisory expectations for insurers who provide home insurance products to consumers, namely:

  1. send a clear communication of the risks associated with under-insurance to policyholders, in a stand-alone, written form;
  2. put in place a clear plan to address the points raised in the letter and send it to the CBI by 28 October 2022;
  3. ensure the board has appropriate oversight of the plan; and
  4. act honestly, fairly and professionally in the best interests of its customers and the integrity of the market.

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.

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