FIG Top 5 at 5 – 06/11/2025

On 3 November 2025, Deputy Director, Consumer & Investor Protection, at the Central Bank of Ireland (“Central Bank”), Colm Kinkaid, delivered a speech (“Speech”) at a Central Bank workshop (“Workshop”) on the revised Consumer Protection Code (“CPC”), specifically addressing the issue as to how best to protect consumers in vulnerable circumstances.

The Deputy Governor highlighted that if there is to be trust in financial services, then consumers need to be confident that their best interests will be secured when they find themselves at their most vulnerable. He also noted that periods of vulnerability can occur at various stages in life, often bringing with them a requirement to make financial decisions that do not occur in the ordinary course of things.

Mr Kinkaid also noted the relevance of the geopolitical context in terms of, causing or perhaps accentuating, vulnerabilities.

With the forgoing in mind, the Deputy Director emphasised the role that the financial services sector has to play in supporting the financial wellbeing of consumers, citing it as a challenging and complex task.

The Deputy Director also took the opportunity to encourage the financial services sector to learn from other sectors and public services who might have better approaches as regards dealing with consumers in vulnerable circumstances.

Engagement

Mr Kinkaid stated that, through the Workshop, the Central Bank is aiming to gather insights from the financial services sector as to what vulnerability looks like in practical terms, in the context of the revised CPC, which is due to become operational on 24 March 2026 – for more information on the revised CPC, see our dedicated insight here.

He also stated that the Central Bank will continue to hold such events in advance of March 2026 so that there will be a shared understanding on the new provisions of the CPC.

Further, the Deputy Director confirmed that the Central Bank will share and circulate information as its understanding, and impact of, the revised CPC evolves.

Vulnerability

Mr Kinkaid reminded the Workshop participants that one of the key changes to the CPC is the broadening of the concept of vulnerability to which specific protections apply and that, in that regard, the Central Bank has aligned itself with the G20 / OECD’s high level principles on financial consumer protection.

Implementation of the CPC

The Deputy Director highlighted a number of matters relating to the Central Bank’s  general approach to the implementation of the revised CPC, some of which are as follows:

• the Central Bank expects regulated firms to be well advanced by now as regards their implementation of the revised CPC, supported by clear plans, resources and accountability at a senior level. Such implementation efforts will be taken into account  in future supervisory actions;
• the Central Bank will be open and engaged when it comes to the new requirements introduced by the CPC, recognising that the Central Bank will not always have the answer as to what is best practice;
• the requirements of the CPC will be reflected throughout the Central Bank’s supervisory work, in line with the new integrated supervisory approach, with a particular focus on the three areas outlined in Mr Kinkaid’s recent speech on financial wellbeing – for more information, see FIG Top 5 at 5 dated 9 October 2025. The Deputy Governor highlighted that the ways in which regulated firms have enhanced supports for vulnerable customers will feature in the Central Bank’s supervisory engagements across those three areas; and
• the Central Bank will assess the effectiveness of the CPC through the substantive outcomes achieved by firms, including improving how consumer insights are gathered and considered and how the Central Bank uses conduct of business returns. The Deputy Director asked firms to build a better understanding of their customers’ financial wellbeing / needs / challenges so as to support good outcomes for consumers and businesses.

Monitoring Progress

The Deputy Director spoke about the need to have a shared concept of financial wellbeing in order to assess what substantive outcomes for consumers should actually look like. In this regard, he expressed  the Central Bank’s support for Ireland’s Well-being Framework and confirmed that the Central Bank is working at OECD level on the development of the conceptual framework for financial wellbeing.

Mr Kinkaid went on to state that more structured data on this area is needed – reiterating his encouragement to firms to focus on this matter.

The Deputy Director stated that the Central Bank is putting a new Consumer Insights Model in place aimed at understanding the position of Irish consumers by way of a national survey of 4,000 consumers on topics relevant to financial wellbeing – the results of which will be published and will inform policy and supervisory strategy.

Finally, the Deputy Director highlighted that the Central Bank will be closely monitoring the extent to which firms’ implementation of the revised CPC is leading to demonstrably better consumer outcomes.

On 31 October 2025, the Central Bank of Ireland (“Central Bank”) published its seventh annual private motor insurance report (“Report”) of the National Claims Information Database (“NCID”). The Report is aimed at improving the overall transparency of the private motor claims environment.

The Report contains six parts and related appendices, covering the following areas:

• Part 1 – addresses premiums for private motor insurance between 2010 and 2024;
• Part 2 – this looks at claims as regards motor accidents that took place between 2010 and 2024;
• Part 3 – this provides a breakdown of insurers’ income and expenditure for private motor insurance for the financial years 2010 – 2024;
• Part 4 – this examines how claims were settled between 2015 and 2024, together with the various associated costs;
• Part 5 – this contains an analysis of the impact of the personal injury guidelines on settlement of claims; and
• Part 6 – this looks at the change in the ultimate claim costs for the years 2018 – 2024, containing information as to claim development patterns and large claims from 2010 to 2024.

Some of the key findings from the Report are as follows:

Cost of Insurance

• in 2024, the average written premium per policy increased by 9% to €623;
• the claims cost per policy increased by 3% in 2024 to €397 – the highest it has stood at since 2014; and
• the cost of damage claims per policy increased to €192 in 2024 while costs for injury claims per policy stabilised at approximately €200 between 2022 and 2024.

Claim Settlements

• total cost of claims settled in 2024 was €792 million, encompassing 166,000 claims;
• the number of injury claims settled in 2024 increased by 16% as compared to 2023 – still 23% lower than the pre Covid average;
• damage claims increased by 6%, while the average cost of damage claims increased by 18% compared to 2023;
• as regards injury claims settled in 2024:
  • 48% settled directly with an insurer, taking, on average, to 1.8 years to settle;
  • 16% settled through the Injuries Resolution Board (“IRB”) with average settlement of 2.7 years; and

• 36% were settled via litigation, taking five years to settle on average.

Personal Injuries Guidelines

For injury claims that settled directly or through the IRB in 2024, almost all of those claims settled under the personal injury guidelines (“Guidelines”).

For injury claims that settled via litigation in H2 2024, 57% settled under the Guidelines and 43% settled under the book of quantum.

The Report shows that the average cost of claims that settled under the Guidelines in 2024, when compared to claims that settled in the same channel under the book of quantum in 2020, were:

• 33% lower for claims that settled directly before the IRB;
• 8% lower for claims settling through IRB; and
• 26% lower for claims settling directly after the IRB.

The Report also shows a reduction in compensation awards for claims (under €100,000 compensation cost) settled via litigation.

Operating Profit

Operating profit for motor insurance companies was 4% of total income in 2024, down from 8% in 2023 and 12% in 2022.

Robert Kelly, Director of Economics and Statistics at the Central Bank, stated that:

“The average written premium has increased by 9% compared to 2023. The data also shows claims costs continue to rise, primarily due to an increase in damage claims. In 2024, damage claims accounted for 54% of settled claim costs, a significant increase from the 29% average observed between 2015 and 2021…

While there has been an upward trend in the number of claims settled and the associated costs since the COVID years, it is important to highlight the total cost of injury claims settled in 2024 was 16% lower than the average from 2015 to 2019, with the total number of injury claims settled being 23% lower. Operating profit was 4% of total income in 2024, down from 8% in 2023 and 12% in 2022. Overall, between 2010 and 2024, operating profit was 5%.”

Reaction

In a related press release (“Press Release”) dated 31 October 2025, Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Robert Troy (“Minister”), welcomed the publication of the Report. Some of the matters highlighted in the Press Release are as follows:

• the Minister fully expects that insurers will pass savings, on foot of the Government insurance reform agenda, onto consumers by way of reduced premiums;
• the Minister is focused on bringing further transparency to the insurance sector with the new action plan for insurance reform – for more information, see FIG Top 5 at 5 dated 31 July 2025. In this regard, the Press Release states that work has commenced on the development of a transparency code for the insurance sector requiring insurers to give simple and comparable explanations of how premiums are arrived at and other broader factors that influence pricing.

The Minister stated that:

“…It’s long overdue that the benefits of the Government’s reform agenda be passed on to consumers and businesses. I call on the insurance companies to ensure that these reforms are felt directly by their customers through increased transparency and lower premiums.”

In another press release, also dated 31 October 2025,  Insurance Ireland commented on the publication of the Report, particularly highlighting that while average premiums remain below previous highs, claims costs continue to increase – particularly in relation to vehicle damage and legal expenses.

Moyagh Murdock, CEO of Insurance Ireland stated that:

“The NCID data shows that while average injury compensation has decreased under the Personal Injuries Guidelines, the overall claims environment continues to be eroded by high legal costs and longer litigation timeframes. In 2024, legal costs for litigated claims were 27% higher than the 2015–2019 average, making up 48% of total costs for claims under €100,000. This offsets much of the benefit achieved through reform.”

On 30 October 2025, the European Banking Authority (“EBA”) published its technical advice (“Advice”) in response to the European Commission’s (“Commission”) call for advice (“CfA”) of March 2024, on draft regulatory technical standards (“RTS”) under the Sixth Anti-Money Laundering Directive (“AMLD6”), the Regulation establishing the Anti-Money Laundering Authority (“AMLAR”) and the Anti-Money Laundering Regulation (“AMLR”). For more information on the CfA, see FIG Top 5 at 5 dated 14 March 2024.

Contents

The Advice, which will inform the work of the Authority for AML / CFT (“AMLA”), sets out the EBA’s proposals for the following RTS:

• draft RTS on the assessment and clarification of the inherent and residual risk profile of obliged entities and the frequency for the review of such profiles under article 40(2) of AMLD6;
• draft RTS regarding the risk assessment for the purposes of direct supervision under article 12(7) of AMLAR;
• draft RTS on customer due diligence (“CDD”) under article 28(1) of AMLR; and
• draft RTS on pecuniary sanctions, administrative measures and periodic penalty payments under article 53(10) of AMLD6.

The Commission also requested that the EBA provide options regarding two additional mandates that the ALMA may have regard to when working on those areas, as follows:

• guidelines on base amounts for pecuniary fines under article 53(11) AMLD6; and
• draft RTS on group wide policies and procedures under article 16(4) AMLR.

EBA’s Approach  

The Advice explains that the EBA, in developing the proposals for the various RTS, took a proportionate and risk based approach with a focus on effective, workable outcomes – an approach that can be applied effectively by financial institutions and their AML / CFT supervisors.

The EBA built on existing standards, where possible, to streamline regulatory frameworks and limit disruption and also sought maximum harmonisation across supervisors, member states and sectors.

The Advice also highlights that the approach taken takes account of limiting the cost of compliance where possible.

Some examples of this approach, reflected in the Advice, include the following:

• the EBA reduced the number of data points feeding into the risk assessment methodology by approximately 15% with the result that most institutions will not have to provide more than 100-150 data points;
• the EBA also proposed that the same data points should be used to inform both the supervisors’ entity level risk assessment and the assessment to be carried out by AMLA for the purpose of directly supervised entities with the result that obliged entities will have to report just one set of data points, but the data can be used for both assessments;
• in terms of flexibility, the EBA point to the fact that the CDD RTS do not stipulate the requirement of specific documents but instead, defines the type and nature of information to be collected by obliged entities; and
• the EBA introduced transitional provisions in several draft RTS to give institutions / supervisor enough time to adapt their systems and controls.

In a related press release, the EBA stated that the proposals in the Advice will “provide a solid foundation for a resilient and effective EU AML / CFT system, in line with AMLA’s mandate and statutory objectives.”

Next Steps

In light of the fact that the EBA will be transferring the powers that are specific to AML / CFT to the AMLA on 31 December 2025, the AMLA will now take the proposals in the Advice forward, in consultation with the Commission.

On 29 October 2025, the European Commission (“Commission”) adopted Delegated Regulation (C(2025) 7206 (“Delegated Regulation”) which amends the Solvency II Delegated Regulation (“Solvency II Delegated Regulation”).

Annexes 1-18 of the Delegated Regulation have been published separately.

Background

The Commission consulted on a draft of the Delegated Regulation in July 2025, for more information, see FIG Top 5 at 5 dated 24 July 2025.

The Solvency II Delegated Regulation supplements the Solvency II Directive by  setting out prudential rules for (re)insurance companies in the EU.

The Solvency II Directive will be amended by Directive (EU) 2025/2 (“Solvency II Amending Directive”), which will introduce and amend more than 12 empowerments for delegated acts. Also,  some provisions of the Solvency II Delegated Regulation will become obsolete on 30 January 2027, when the Solvency II Amending Directive becomes applicable.

The Solvency II Amending Directive  introduces a simplified supervisory regime for insurers categorised as small and non-complex undertakings (“SNCUs”).

The Delegated Regulation is aimed at complementing the framework under the Solvency II Amending Directive  by specifying operational details needed for SNCUs to apply the lighter measures in practice. It also provides a clear, limited and exhaustive list of conditions that supervisory authorities must apply when assessing requests from non-SNCUs for proportionality measures.

Savings and Investment Union

In a related press release (”Press Release”) dated 29 October 2025, the Commission stated that its adoption of the Delegated Regulation will support the essential role that institutional investors, such as insurers, play in the financing of the EU’s economy, contributing to the broader objectives of the savings and investment union (“SIU”).

The Press Release details how the Delegated Regulation will encourage long term investments by enhancing the investment capacity of insurers, for example, the provisions in the Delegated Regulation on a dedicated treatment for long-term equity investments by insurers will encourage the financing of European firms and facilitate their access to stable, long-term capital, including through private equity and venture capital.

Some further matters highlighted in the Press Release include the following:

• the Delegated Regulation will remove unnecessary prudential costs for insurers when investing in securitisation;
• the amendments in the Delegated Regulation will preserve the ability of insurers to offer long term life insurance and pension products; and
• administrative burdens will be reduced.

Next Steps

The European Parliament and  the European Council now have three months to scrutinise the Delegated Regulation adopted by the Commission. If neither institution has an objection, the Delegated Regulation will  be published in the OJEU, entering into force 20 days following such publication and applying from 30 January 2027.

On 3 November 2025, the European Banking Authority (“EBA”) published a consultation (“Consultation”) on draft guidelines (“Guidelines”) on the authorisation of third country branches (“TCBs”) under article 48c(8) of the Capital Requirements Directive IV (“CRD IV”), as amended by the Capital Requirements Directive VI (“CRD VI”).

CRD VI introduces a new minimum harmonisation regime applicable to EU branches of TCBs, covering authorisation, prudential requirements – including booking arrangements, capital endowment, liquidity, internal governance, common reporting requirements and supervisory practices.

The Guidelines, which are applicable to the authorisation of all TCBs, are addressed to competent authorities and to the third country head undertakings submitting an application for authorisation.

The EBA is seeking feedback on all proposals set out in the Consultation.

Content

The Guidelines set out the information that is to be provided to competent authorities when applying for authorisation of a TCB and address the following matters:

• the information that is required for authorisation of a TCB, such as, information about the identity of the applicant head undertaking and its group / the TCB’s programme of operations, organisational structure and risk management / information on AML / CFT requirements / information on the capital endowment requirement / information in relation to the liquidity requirements;
• the standard forms and templates for the provision of the required information;
• the assessment of the conditions for granting authorisation;
• the procedure and the conditions for authorisation of a TCB; and
• the conditions, under which, competent authorities may rely on information that has already been provided in the process of any prior TCB authorisation.

The Guidelines also contain a standard letter to a third country authority regarding the compliance of the head undertaking, and / or its group, with prudential requirements.

Other Draft Technical Standards

The Guidelines take account of other technical standards and guidelines that have been developed for the implementation of the new TCB regime such as, draft regulatory technical standards (“RTS”) on booking arrangements / draft RTS on supervisory colleges for TCBs / draft implementing technical standards on reporting requirements / draft revised guidelines on internal governance.

Next Steps

The Consultation is open for feedback until 3 February 2026. The EBA will hold a virtual public hearing on 10 December 2025 from 12:00 to 13:00 CET – interested parties may register here by 8 December 2025.

The draft Guidelines state that they will be applicable as of 11 January 2027.