The European Communities (Insurance Mediation) Regulations 2005 (SI 13/2005) (the “Regulations”) transpose the provisions of Directive 2002/92 and set out rules for undertaking insurance mediation and reinsurance mediation. The Regulations prescribe registration requirements for anyone who wishes to carry out insurance mediation business or act as an insurance or reinsurance intermediary.
The Central Bank has now issued a notice increasing the professional indemnity insurance (PII) cover required under Regulation 17(2) of the Regulations. From 1 August 2013, all firms registered under the Regulations must hold PII cover at an increased level of €1.25 million per claim (currently €1 million per claim) and €1.85 million in relation to aggregate claims (currently €1.5 million in relation to aggregate claims). Firms which hold existing PII cover will be required to increase their level of cover as and when their policy comes up for renewal after 1 August 2013.