The Central Bank of Ireland (CBI) has published its quarterly insurance newsletter (link below).
Key themes from the newsletter are:
- Enhanced monitoring of the impact of inflation - the CBI has observed a trend of insurers splitting inflation into various components, tailored to their own risk profile (e.g. general economic inflation and specific inflation measures which have a disproportionate impact on insurers).
- Shortcomings observed in the thematic review of recovery plans - in particular, scenario analysis being insufficiently severe, over-dependence on group support, failing to describe how operations would be impacted by recovery options, and too much discretion around escalation, required actions and timeframes.
- Key sectoral risks for (re)insurers - including inflation, volatile financial markets, deteriorating macroeconomic environment, geopolitical risks and operational risks (focused on cyber and outsourcing risks).
- Consumer protection expectations in relation to data migration projects.