Copyright Page
IMF Country Report No. 22/244
IRELAND
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE ON INSURANCE REGULATION AND SUPERVISION
July 2022
This paper on Ireland was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on July 13, 2022.
Copies of this report are available to the public from
International Monetary Fund • Publication Services
PO Box 92780 • Washington, D.C. 20090
Telephone: (202) 623–7430 • Fax: (202) 623–7201
E-mail: publications@imf.org Web: http://www.imf.org
Price: $18.00 per printed copy
International Monetary Fund
Washington, D.C.
© 2022 International Monetary Fund
Title page
IRELAND
FINANCIAL SECTOR ASSESSMENT PROGRAM
July 13, 2022
TECHNICAL NOTE
INSURANCE REGULATION AND SUPERVISION
Prepared By
Monetary and Capital Markets Department
This Background Note was prepared by IMF staff in the context of the Financial Sector Assessment Program in Ireland. It contains technical analysis and detailed information underpinning the FSAP’s findings and recommendations. Further information on the FSAP can be found at https://www.imf.org/en/Publications/fssa
Contents
Glossary
EXECUTIVE SUMMARY
INTRODUCTION
INSURANCE MARKET STRUCTURE
REGULATORY STRUCTURE
INSURANCE REGULATION
A. Key Developments since the 2016 FSAP
B. Solvency II Implementation
C. Insurance Recovery and Resolution
D. Business Conduct and Consumer Protection
INSURANCE SUPERVISION
A. Supervisory Review and Reporting
B. On-Site Inspections
C. Risk Management and Internal Controls
D. Reinsurance
E. Consolidated Supervision and Supervision of Cross-Border Business
F. Macroprudential Surveillance
G. Conduct of Business and Consumer Protection
BOXES
1. The Impact of COVID-19
2. COVID-19 Response
3. The Central Bank’s Climate Risk Strategy
FIGURES
1. Size and Structure of the Insurance Sector
2. Cross-Border Business
3. Insurance Sector Liabilities
4. Insurance Asset Allocation
5. Profitability and Solvency
6. Composition of the Solvency Capital Requirement
7. Minimum Engagement Model Intensity Matrix
TABLES
1. Main Recommendations on Insurance Regulation and Supervision
2. Insurance Penetration and Density
3. Premium Income
APPENDICES
I. Financial Soundness Indicators of the Insurance Sector
II. Follow-up to the 2016 FSAP Recommendations
Glossary
| AML/C FT | Anti-Money Laundering and Combating the Financing of Terrorism |
| BSCR | Basic Solvency Capital Requirement |
| CRA | Core Risk Assessment |
| DoF | Department of Finance |
| D-SII | Domestic Systemically Important Insurer |
| EIOPA | European Insurance and Occupational Pensions Authority |
| ESA | European Supervisory Authority |
| EU | European Union |
| FPS | Freedom to Provide Services |
| FSAP | Financial Sector Assessment Program |
| GAAP | Generally Accepted Accounting Principles |
| GDP | Gross Domestic Product |
| IAIS | International Association of Insurance Supervisors |
| ICP | Insurance Core Principle |
| IDD | Insurance Distribution Directive |
| IFRS | International Financial Reporting Standards |
| IRRD | Insurance Recovery and Resolution Directive |
| LTG | Long-Term Guarantee |
| MCR | Minimum Capital Requirement |
| MoU | Memorandum of Understanding |
| MMoU | Multilateral Memorandum of Understanding |
| NCID | National Claims Information Database |
| ORSA | Own Risk and Solvency Assessment |
| PRISM | Probability Risk and Impact System |
| QRT | Quantitative Reporting Template |
| RMP | Risk Mitigation Program |
| SCR | Solvency Capital Requirement |
| SFCR | Solvency and Financial Condition Report |
| SPV | Special Purpose Vehicle |
| VA | Volatility Adjustment |