Insurance Temporary Run-off Regime

The UK withdrew from the EU on 31 January 2020 and entered an 11 month implementation period until 31 December 2020. During this time, EU law continued to apply to and in the UK but not thereafter. This means that UK and Gibraltar (GI) insurers and insurance intermediaries, who previously provided insurance products and services to Irish customers, can no longer, from 31 December 2020, avail of the European passport and must put in place other arrangements, if they wish to continue to provide these products and services.  Recognising the potential impact on policyholders, where firms have not put in place alternative arrangements, the Central Bank and the Department of Finance have worked together to establish a Temporary Run-Off Regime (TRR) for insurers and insurance intermediaries (including ancillary insurance intermediaries).  The purpose of the TRR is to protect consumers of insurance products by ensuring that existing policies can continue to be serviced after 31 December 2020.

UK / GI insurers and insurance intermediaries who satisfy the conditions of the TRR are permitted to administer their existing portfolio, up to a maximum period of 15 years from 31 December 2020 in order to ensure an orderly termination of their activities in the Republic of Ireland and to ensure minimum disruption for policyholders.

In order to meet the conditions of the TRR, the relevant UK / GI insurer or insurance intermediary must:

  • Prior to 31 December 2020 be authorised as an insurer, or registered as an insurance intermediary in the UK / GI and have started business in the Republic of Ireland either on a freedom of establishment or freedom to provide services basis.
  • Have, on or before, 31 December 2020 ceased to conduct new insurance contracts and/or new insurance distribution business, as appropriate, in the Republic of Ireland.
  • After 31 December 2020, exclusively administer their existing portfolios in order to terminate their activity in the Republic of Ireland.
  • Comply with the general good requirements.

Legislation

Part 10 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 (the Act) amends the European Union (Insurance and Reinsurance) Regulations 2015 and the European Union (Insurance Distribution) Regulations 2018 (IDR) to provide for the TRR.

Registration

Insurers

UK / GI insurers are required to notify the Central Bank of the application of the TRR to their firm no later than three months after 31 December 2020 by completing the Notification Form below. The completed Notification Form should be emailed to insurance@centralbank.ie.

Insurers - Temporary Run-Off Regime Notification Form | doc 108 KB

Insurance Intermediaries

UK / GI insurance intermediaries are required to notify the Central Bank of the application of the TRR to their firm no later than three months after 31 December 2020 by completing the following Notification Form. The completed Notification Form should be emailed to idd.notifications@centralbank.ie.

Insurance Intermediaries -Temporary Run-Off Regime Notification Form | doc 128 KB

Register of Insurers and Insurance Intermediaries subject to the TRR

The registers of insurers and insurance intermediaries that have notified the Central Bank that they satisfy the conditions of the TRR are available on the Registers section of the Central Bank’s website.

Reporting

Insurers

UK / GI insurers, to whom the TRR applies, are required to provide the Central Bank with the information outlined in the Reporting Form below no later than four months from 31 December 2020 and at least  annually  thereafter via the  Central Bank’s Online Reporting System (ONR). Details on how to register on the ONR will be provided following receipt of the Notification Form.

Insurers - Temporary Run-Off Regime Reporting Form | xls 27 KB

Insurance Intermediaries

UK / GI insurance intermediaries to whom the TRR applies, are required to provide the Central Bank with the information outlined in Reporting Form below no later than four months from 31 December 2020 and at least annually thereafter.

Insurance Intermediaries - Temporary Run-Off Regime Reporting Form | xls 68 KB

Temporary Run-off Regime FAQ

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