Ireland: Issuance of policy documents by coverholders and service companies
The Central Bank of Ireland (CBI) has introduced new restrictions on the issuance of policy documents for consumers by intermediaries on behalf of insurers.
The CBI has advised insurers that where a policy contract for a consumer located in Ireland is issued by an insurance intermediary on behalf of an insurer, the CBI does not permit the document to contain any reference to, or any branding relating to, the insurance intermediary. The document must only contain branding that refers to the insurer. This requirement is effective immediately and applies regardless of the location of the insurance intermediary.
The CBI at the same time reminded insurers and insurance intermediaries of the requirements under Regulation 193 of the EU (Insurance and Reinsurance) Regulations 2015 and the Consumer Protection Code 2012 which oblige insurers to state the following information clearly on their policy documents for risks located in Ireland:
- The country of incorporation of the insurer.
- The name of the insurer (this only applies to policies where the insured is a consumer in Ireland).
This important information must not be disguised, diminished or obscured on the policy documentation.
The country of incorporation for Lloyd’s policies written on a freedom of services basis is the United Kingdom. The country of incorporation for Lloyd’s policies written on an establishment basis is Ireland.
The name of the insurer on Lloyd’s policies should state “Certain underwriters at Lloyd’s” or “Certain underwriters at Lloyd’s in respect of syndicate XYZ”.
Managing agents are requested to review the policy documentation for consumers in Ireland that is issued on their behalf by coverholders and service companies to ensure that it complies with the above requirements. Please consult the relevant section of Crystal for more information.