| Dear Member
As you are aware, the Central Bank previously advised Brokers of its expectations of Brokers regarding the assessment of the financial soundness of insurers with which the Broker places business. Brokers Ireland has communicated with our members on this issue and drafted templates to aid our members in meeting the expectations of the CBI.
Since 2021, Brokers Ireland has commissioned Milliman to draft Product Provider reports in respect of domestic providers (outlined below) which assist members in carrying out due diligence to meet the Central Bank’s expectations in relation to assessing the financial soundness of providers.
LIFE: Zurich Life, Irish Life, New Ireland, Aviva Life and Pensions, Standard Life, Royal London and Allianz.
GENERAL: AXA, AIG, Aviva, Allianz, Generali, Intact, FBD, Travelers, Zurich.
These reports have now been updated in respect of the year end 2025 and set out the following:
- Company profile including its ownership structure, product types, markets, and risk profile
- Experience and expertise of the company covering its years in the market, its staff headcount if available, and any material changes or events noted in the latest Solvency and Financial Condition Report;
- The following information was published in the annual Solvency and Financial Condition Report:
- Premiums written over the last 3 years, gross and net of reinsurance
- Total technical provisions over the last 3 years, gross and net of reinsurance.
- Eligible own funds, solvency capital requirement, and solvency ratios over the last 3 years.
- Own funds split into capital types.
- Financial rating of the undertaking or its parent at the date of the report.
- Any published regulatory action taken against the insurer in the last 5 years.
The updated reports are available in the Compliance Support section of our website members area here. Members should continue to complete the “Assessing soundness” template, using the provider reports to assist in carrying out due diligence on providers with whom you place business which is also available in the Financial Soundness folder.
Additional Requirements for MGAs
The Central Bank has indicated that it expects MGAs to carry out the following additional due diligence on the insurers with which they place business. Brokers Ireland would recommend that MGAs and other bodies who are introducing insurers to Irish brokers conduct a similar exercise and make this information available to Brokers.
- Check the protections available for policyholders (national compensation/guarantee funds)
- Arrange an independent third-party review (in the absence of a third-party report, the MGA will have to demonstrate that it assessed the financial soundness of the insurer)
- Have in place a contingency plan in case the Insurer fails or exits the Irish market.
If you have any questions on the above or require any further assistance, please contact the Brokers Ireland compliance team at compliance@brokersireland.ie
Kind regards |
