CP150 - Guidance for (Re)insurance Undertakings on Intragroup Transactions and Exposures
Overview
Description
Many (re)insurers established in Ireland are part of large international (re)insurance groups. The Central Bank of Ireland (the Central Bank) recognises the benefits of being part of a group but also the risks associated with inadequate oversight and
governance in the Irish (re)insurance undertaking.
Supported by findings of its thematic reviews, the Central Bank has reviewed and assessed whether the fundamentals of the governance and the management of risks introduced by intragroup arrangements, as well as the treatment of these items by (re)insurance
undertakings, are sound, by reference to the relevant regulatory requirements.
The Central Bank has published Guidance for (Re)Insurance Undertakings on Intragroup Transactions and Exposures (the Guidance). The aim of the Guidance is to provide clarity on the Central Bank’s expectations with regard to intragroup transactions
& exposures of (re)insurance undertaking supervised by the Central Bank and in doing so to promote a level playing field in this regard. The Guidance focuses on three key exposures namely: (i) intragroup assets; (ii) intragroup reinsurance;
and (iii) cash pooling/treasury function arrangements as these are the most significant exposures observed by the Central Bank.
Publication of the Guidance follows a period of consultation and consideration/incorporation of the feedback received. The Central Bank received submissions from a number of insurance representative bodies and one insurance undertaking. Details on the
Central Bank’s consideration of the feedback received are set out in the accompanying Feedback Statement. Many points raised in the submissions were addressed by making minor adjustments to the Guidance and/or clarifying, in the Feedback Statement,
the Central Bank’s intention with respect to some of the provisions.
View the Guidance for (Re)Insurance Undertakings on Intragroup Transactions and Exposures document
CP Number :
CP150
Date :
04 July 2022
Closing Date :
22 September 2022
Consultation Paper Document
CP150 Guidance for Re insurance Undertakings on Intragroup Transactions & Exposures | pdf 534 KB
Feedback Statement
CP150 Feedback Statement - Guidance for (Re)insurance Undertakings on Intragroup Transactions and Exposures | pdf 477 KB
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