IRELAND Law and Practice Contributed by: Grainne Callanan, April McClements and Aisling Kavanagh, Matheson LLP
Matheson LLP 70 Sir John Rogerson’s Quay Dublin 2 Ireland Tel: +353 1 232 2000 Fax: +353 1 232 3333 Email: dublin@matheson.com Web: www.matheson.com
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law Ireland has a common-law legal system. The law in relation to insurance contracts is primarily governed by common-law principles – the origins of which can be found in case law. Following the enactment of the Consumer Insurance Contracts Act 2019 (CICA), the Marine Insurance Act 1906 (MIA) only applies to non-consumer contracts. Some forms of insurance are compulsory under Irish law (eg, third-party motor insurance and professional indemnity cover for certain professionals). There is no Irish equivalent of the UK Insurance Act 2015 for non-consumers. CICA was enacted in 2019 and reformed the consumer insurance law. It com- menced in two stages (on 1 September 2020 and 1 September 2021), following industry pressure to allow sufficient time for the insurance industry to account for the far-reaching changes imposed. For consumer insurance contracts, CICA has replaced the duty of utmost good faith and the consumer’s duty of disclo- sure with a duty to honestly and with reasonable care respond to questions asked by the insurer. Consumers There are some restrictions on insurers’ freedom of contract (largely for the protection of consumers), as they are required to comply with Irish legislation enacted to implement EU law. Consumer protec- tion law has undergone several changes as a result of the Unfair Terms in Consumer Contracts Directive
1993/13/EC and the Distance Marketing of Financial Services Directive 2002/65/EC. When dealing with a “consumer”, the insurer must also comply with the Central Bank of Ireland (CBI)’s Consumer Protection Code 2012 (CPC), the Consum- er Protection Act 2007, and the Consumer Rights Act 2022 (CRA). Under the CPC, “consumer” is broadly defined and includes individuals and small businesses with a turnover of less than EUR3 million. The exact definition is applied for CICA purposes. “Consumer” under the CRA is defined as “an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession”. It is important to note, however, that the revised CPC (see 12. Developments in Insurance Law ) amends the turnover figure to less than EUR5 million. This will take effect on 24 March 2026. Insurance contracts and the marketing and sale of insurance products to consumers must also comply with the Sale of Goods and Supply of Services Act 1980 (as amended by the CRA). 2. Regulation of Insurance and Reinsurance 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance Ireland has a strong and efficient risk-based prudential regulatory framework that focuses on the application of the proportionality principle.
223 CHAMBERS.COM
Powered by FlippingBook