The Supreme Court has ruled that the Motor Insurers’ Bureau of Ireland (“MIBI”) is not liable to meet the cost of claims against former policyholders of the now defunct Setanta Insurance Company Limited (“Setanta”).
The judgment has far reaching implications for Irish motor insurers and policyholders.
Setanta, a Maltese registered insurance company which also operated in Ireland, went into liquidation on 30th April 2014 leaving an estimated 1,666 uninsured claims against Irish policyholders valued at around €93 million.
William Fry understands that, on 30 January 2017, having regard for the recent implementation of the Solvency II regime, EIOPA's Board of Supervisors adopted a decision (the "Decision") which will replace EIOPA's General Protocol relating to the collaboration of the insurance supervisory authorities of the Member States of the European Union (March 2008 Edition).
We understand that the Decision with replace the General Protocol as of 1 May 2017 (and will be available on EIOPA's website shortly).
In the interim, the General Protocol (March 2008 Edition) continues to apply.
2016 has seen the Irish High Court address the status of third-party litigation funding, and has struck a blow to funders seeking to service the Irish market by declaring it unlawful.
The Court’s judgment was handed down in April in the case of Persona Digital Telephony Ltd v The Minister for Public Enterprise.
Trouble in the Emerald Isle
On 25 July 2016, Insurance Ireland published a statement opposing the Department of Finance's recent recommendation that liabilities of any insolvent motor insurer should be assumed by the Insurance Compensation Fund. Insurance Ireland states this would and pose a systemic risk to the Irish motor insurance market.
Infrastructure & Economic Development
This briefing sets out some of the key points of the 2016 Programme for
Government, which includes a wide range of policy proposals in areas
such as infrastructure and economic development, public administration,
constitutional change, financial services, taxation and employment law and
industrial relations.
It is expected that the Government’s Legislation Programme will be
published soon, setting out the legislation that the new Government will
promote in order to give effect to the Programme for Government.
Law Society of Ireland v Motor Insurers’ Bureau of Ireland [04.09.15]
Regulations
The European Union (Insurance and Reinsurance) Regulations 2015 (S.I. No.485/2015) (the “Regulations”) were signed by the Minister for Finance on 4 November 2015, transposing the Solvency II Directive into Irish law. The Regulations establish new capital requirements, valuation techniques and governance and reporting standards. The Regulations also provide the Central Bank of Ireland with increased supervisory responsibilities.
Background
Introductory remarks
NEW GOVERNMENT LEGISLATION PROGRAMME: INDUSTRY & SECTOR SPECIFIC BREAKDOWN 19 JANUARY 2015 The Irish Government has published its legislation programme for the Spring/Summer 2015 parliamentary session. There are 32 Bills which are currently before the Oireachtas. In addition, there are 137 proposed Bills set out in the Programme, 41 of which the Government intends publishing during the Spring/Summer Session.
In January 2014, the Malta Financial Services Authority (“MFSA”) announced that Setanta Insurance Company Limited (“Setanta Insurance”) had ceased carrying on insurance business. As a result, no new business or renewals would be issued by the company, although existing policies would remain in force.