Financial Services Download
On 27 April 2021, the Central Bank of Ireland published its feedback statement in respect of consultation paper 131 “Regulations for pre-emptive recovery planning for (re)insurers)” (“CP 131”).
Contents
As a result of CP 131, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Recovery Plan Requirements for Insurers) Regulations 2021 commenced on 19 April 2021 and (re)insurers are now required to:
- prepare a pre-emptive recovery plan covering areas including; governance processes, a menu of recovery options, a trigger framework accompanied by a set of stress scenarios and a communication strategy.
- review and, if necessary, update the recovery plan at least every 12 months for High and Medium-High impact firms and at least every 24 months for Medium-Low and Low impact firms or after any material change to the legal or organisational structure of the (re)insurer, its business or its financial position.
- provide a copy of the recovery plan to the Central Bank on request
The deadline for preparation of a recovery plan under the new regulations is 31 March 2022 (or within 12 months of authorisation for (re)insurers newly authorised on or after 19 April 2021). Ultimately, the Solvency II framework is not a zero failure regime and the new regulations therefore provide a framework to ensure failure is managed in such a way that the impact on financial stability, policyholders and beneficiaries is minimised.
Open Consultations
- CP140 - Cross Industry Guidance on Operational Resilience Deadline: 09/07/2021
- CP138 - Consultation on Cross-Industry Guidance on Outsourcing Deadline: 26/07/2021
Authors
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Stephen Tennant Stephen is the CEO of Grant Thornton Ireland and previously led the firm’s financial services advisory practice. He has extensive experience in delivering practical solutions to regulatory challenges faced by global financial institutions.View Profile -
Christopher Rogers Christopher is a Director in our insurance practice and has over 16 years’ experience in assurance and advisory. He has extensive experience across reinsurance & insurance (both life and non-life), captive (re)insurers, special purpose reinsurance vehicles (SPRV’s) and insurance brokersView Profile -
David Pauley David is a director in our insurance practice and has over 10 years’ experience providing assurance and advisory services to the insurance sector, having previously worked in the insurance practice of a big four firm.View Profile