Insurance Insights March 2026

Central Bank of Ireland updates

Central Bank: Insurance Quarterly Newsletter

The Central Bank of Ireland (the Central Bank) has published its Q1 newsletter for 2026 (PDF, 869KB). The newsletter focuses on supervisory insights and regulatory updates in the insurance sector.

The newsletter highlights insights from its recent survey on Artificial Intelligence (AI), the Thematic Review on Consideration of Climate Change Risks in Firms’ Governance and insights from the amended Solvency II Regime and IRRD.

Additional updates include Stakeholder Engagement, recent changes to the website, upcoming sector-specific REQ for Life Insurers, updates on DORA, AI and Sustainability as well as other Central Bank updates.

Central Bank: Consumer Protection Code

The Central Bank has published a press release marking the entry into force of the modernised Consumer Protection Code (CPC), strengthening consumer protections across banking, insurance and other financial services.

The updated CPC reinforces firms’ statutory obligation to act in consumers’ best interests by ensuring products are designed to meet customer needs, information is provided clearly and in plain language, and decision-making is properly supported.

The CPC introduces enhanced safeguards in areas such as mortgage switching, fraud and scam prevention, digital and online services, insurance renewals and complaints handling, and requires firms to provide additional support to consumers in vulnerable circumstances.

Central Bank: Governor Blog

The Central Bank has published a blog from Governor Gabriel Makhlouf outlining the CBI Governing Council’s assessment of a significantly more uncertain economic environment following the escalation of conflict in the Middle East.

While inflation expectations remain anchored around the 2 per cent target, higher energy prices pose near-term upside risks to inflation, alongside downside risks to growth through weaker confidence, real incomes and global trade.

Other European and International Supervisory Authority Updates

ESAs: Spring risk update highlights geopolitical pressures and rising private finance risks

On 27 March, the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published (PDF, 902KB) their Spring 2026 Joint Committee update on risks and vulnerabilities in the EU financial system.

The update focuses on the challenges arising from ongoing geopolitical tensions and risks linked to private finance. 

Department of Finance: “Right to be Forgotten” Legislation

On 20 March, the Tánaiste and Minister of State Robert Troy announced that final proposals for Ireland’s “Right to be Forgotten” legislation will be brought to Cabinet in the coming weeks, with the aim of progressing the Bill through the Oireachtas before the summer recess.

The legislation will allow cancer survivors to access mortgage protection insurance on fair terms by requiring insurers to disregard certain cancer-related medical history after a defined period. Key measures include reducing the remission period from seven years to five years and increasing the mortgage protection threshold from €500,000 to €650,000.

The reforms build on the existing voluntary code of practice and are intended to provide legal certainty and stronger protections for cancer survivors. 

UK updates

FCA: MS24/1 – Premium Finance Market Study

On 03 February 2026, the FCA published (PDF, 2.8MB)  a consumer research report on the premium finance market in the UK. Premium finance allows customers to borrow funds to cover insurance premiums. The objective of this market study was to investigate concerns that customers were not getting fair value. Premium finance was used for 48% of UK motor and home insurance policies in 2023. Since 2022, the average Annual Percentage Rate (APR) on premium finance has reduced 4.1%. The average APRs in 2026, split by provider, are as follows:

• Insurer – 16.5%
• Intermediary lender – 23.5%
• Intermediary broker – 29.4%

As part of this market study, the FCA challenged three firms on how fair value is being delivered, which saw an average drop in APR of 7% for these three firms. Possible interventions into the market could have included market-wide cap on APRs, mandate that insurance be offered at 0% APR and a ban on commission. As a result of this study, the FCA is not considering intervention into the premium finance market and concludes that none of the above measures are warranted.

FCA: 2026 Regulatory Priorities

On 24 February 2026, the FCA published (PDF, 215KB) their regulatory priorities for 2026. The regulator’s main priorities for the year are

• Improving consumer understanding, claims handling and service quality
• Increasing access to insurance
• Supporting growth and innovation
• Simplifying regulation

PRA: Solvency and systemic risk of European life insurers

On 27 February 2026, the PRA announced their intent to launch the next Life Insurance Stress Test (“LIST”) in January 2028. They expect to provide more information in Q4 2026.

PRA: Speeches

In February 2026, the PRA published the following speeches:

• Measure, Model, Tackle, Tailor: The Bank of England’s approach to assessing and managing climate impacts across its core objectives - speech by James Talbot
• The world today – remarks by Andrew Bailey
• Frenemies at the gates − speech by Rebecca Jackson
• Talking ’bout next generation − speech by Sarah Breeden