Central Bank now regulates insurance

The Central Bank has written to 6,000 insurance intermediaries requesting them to seek registration or authorisation under the Insurance Act 2000.

The bank has taken over responsibility for the regulation and supervision of insurance intermediaries, both life and non-life. There will be three categories of insurance intermediary.

Restricted activity investment product intermediaries will sell and provide advice on the investments available from companies from whom they hold a letter of appointment.

Intermediaries in the second category can provide similar services but are authorised to advise on a wider range of products without the need to hold a letter of appointment from the relevant product producer.

This is a new category and will allow an intermediary to provide advice on the entire investment and insurance market. The bank estimates that about 1,400 intermediaries will seek this second level of authorisation while 4,000 will fall into the first category. Authorised cash handlers, the third category, will be able to provide the full range of insurance and investment services, as well as cash handling services and own account trading.