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:

  1. Take a holistic approach to climate change risk to better understand risks to the business, secondary impacts, materiality and areas of further focus;
  2. Consider impacts of climate change to the business model beyond the short term; and
  3. 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.

Insurance Newsletter - September 2022