The Central Bank’s planned themed inspections for 2016 will be a mixture of company focused inspections and thematic reviews. The Central Bank is also developing data analytics and trend analysis to assist in more focused supervision.
Generally, the programme of inspections reflects the implementation of Solvency II, with a focus on the domestic nonlife insurance sector. Four key themes identified are: (i) risk management and capital planning (e.g. evidence the ORSA is embedded in the risk management and decision making processes of the company); (ii) motor insurance pricing, oversight and governance review (focused on the sustainability of premium levels and the adequacy of pricing risk assessments carried out by firms given current pressures in the sector); (iii) claims management and underwriting discipline; and (iv) increased focus on lower impact firms – low impact firms under PRISM will be inspected for efficiency in governance and risk management frameworks. The effectiveness of governance and risk management frameworks around reinsurance and outsourcing arrangements is also a key focus.
A link to the press release is here.