29 July 2021. Insurance Ireland welcomes the announcement by Government which will pave the way for the introduction of an individual accountability framework including a senior executive accountability regime (SEAR). In particular, Insurance Ireland welcomes the clarity provided by the proposals set out in the Heads of Bill to support the objective of enhancing consumer trust in the insurance sector, although there is much more work to be done to understand the practical application of the proposals.
Speaking about the proposals, Moyagh Murdock, CEO of Insurance Ireland, said “Insurance Ireland believes the framework will support consumer confidence in financial services by demonstrating that industry participants operate to appropriate conduct standards. It is important to point out that Insurers already operate to high standards of conduct and compliance under the existing regulatory requirements, for example in terms of full compliance with the Central Bank’s Fitness and Probity regime. It will be important that the regime works for the consumer, for regulated entities and for the Regulator, and a clear and transparent regulatory and supervisory approach will be an essential element to this.”
“The insurance industry operates in a very tight and competitive marketplace for talent with many other industry sectors in Ireland,” said Moyagh Murdock, “There is therefore a need for the application of the framework to be proportionate and balanced otherwise the industry will find it difficult to attract the best talent as the risk of individual sanction will be greater than other industries. Insurance Ireland looks forward to working collaboratively with all stakeholders on this important Government initiative for the benefit of consumers, businesses and the industry.”