I propose to take Questions Nos. 283 and 284 together.
For the purposes of this response, the Central Bank is assuming that the term “claims harvesters” refers to the activity of gathering personal information on potential litigants and selling it to third-party legal firms. This is not an activity that falls to be regulated by the Central Bank.
Insurance Intermediaries are regulated by the Central Bank under the European Communities (Insurance Mediation) Regulations 2005 (“the IMR”).
Activities such as ‘loss assessing’ and ‘claims handling’ on behalf of a policyholder are considered to be regulated activities under the European Communities (Insurance Mediation) Regulations 2005 (the “IMR”). The IMR does not include the activity of ‘claims harvesting’.
Firms which deal with claims under insurance contracts are required to be authorised by the Central Bank as ‘insurance intermediaries’ under the IMR. The specific regulations that apply to ‘insurance intermediaries’ are, the IMR, the Consumer Protection Code, 2012, and the Minimum Competency Standards. Chapter 7 of the Consumer Protection Code deals with claims processing and Appendix 3 of the Minimum Competency Code 2017 outlines the competencies required when handling claims.
There are no specific rules on “claims harvesting” activities within the financial regulation framework for which the Central Bank is responsible. “Claims harvesting” activities could be considered to fall under the umbrella of civil litigation rather than being a regulated financial activity. As such, the Central Bank currently has no empowerment or remit to develop rules.
As part of its consumer protection mandate, the Central Bank challenges firms to demonstrate compliance with regulatory requirements. Any evidence of poor conduct may result in increased supervisory engagement or where appropriate, enforcement action, up to and including involuntary revocation of a regulated firm’s license. The Central Bank’s powers derive primarily from legislation, e.g., the Central Bank Act 1942 and the Central Bank (Supervision and Enforcement) Act 2013.
