Central Bank of Ireland published a discussion paper on how undertakings that enter third-party arrangements adequately identify, assess, and mitigate against all material risks that they introduce. Central Bank of Ireland has observed a practice in the insurance sector whereby a number of insurance and reinsurance undertakings are seeking to enter arrangements for the use of separate legal entities for the provision of extensive staffing to the undertaking. Stakeholders can respond to this discussion paper by January 31, 2020.
The discussion paper focuses in on issues such as:
- The appropriateness and adequacy of the initial and ongoing risk identification and management in relation to the arrangement
- The adequacy of the protections provided for policyholders and other beneficiaries on an ongoing basis and in stress scenarios
- The substance in the Irish undertaking
The paper seeks to explore these issues further by posing questions to interested stakeholders on how the boards and senior management of undertakings do or can satisfy themselves that these arrangements are appropriate for their undertakings and provide for adequate and effective governance of same. Also, Central Bank of Ireland intends to find out how undertakings ensure adequate identification and management of all material risks, including risks that would arise in stress scenarios.
Related Link: Discussion Paper
Comment Due Date: January 31, 2020
Keywords: Europe, Ireland, Insurance, Reinsurance, Third-Party Arrangements, Governance, Stress Scenarios, Central Bank of Ireland
Previous ArticleIAIS Publishes Newsletter for November 2019
CBUAE has issued a regulation that introduces the licensing and supervision framework for low-risk, specialized banks.
APRA is consulting on CPG 511—the draft Prudential Practice Guide on remuneration for banks, insurers, and superannuation licensees—with the comment period ending on July 23, 2021.
MAS announced a new RegTech grant scheme and an enhancement of the Digital Acceleration Grant (DAG) scheme to accelerate technology adoption in the financial sector.
PRA published a letter that sets out findings from the 2020 Internal Audit Review of the Collections function of a sample of non-systemic banks and building societies.
EIOPA launched a consultation on the Interbank Offered Rate (IBOR) transitions, in context of the EU Benchmarks Regulation.
EIOPA published a discussion paper on uses cases of, and the European approach to, blockchain and smart contracts in the insurance sector.
HKMA granted a banking license to NongHyup Bank (also NH Bank), which is incorporated in the Republic of Korea.
PRA published a discussion paper that explores options for developing a simpler but resilient prudential framework for banks and building societies that are neither systemically important nor internationally active.
ECB published an opinion on the proposal for a regulation on the pilot regime for market infrastructures based on distributed ledger technology.
EBA proposed regulatory technical standards that specify how to identify the appropriate risk-weights and conditions when assessing minimum loss given default (LGD) values for exposures secured by immovable property.