Tuesday 22 October 2019

Financial system 'resilient to withstand hard Brexit' - Central Bank Deputy Governor

Central Bank Deputy Governor Ed Sibley, Photo: Tony Gavin
Central Bank Deputy Governor Ed Sibley, Photo: Tony Gavin
Ellie Donnelly

Ellie Donnelly

The Irish financial system is "resilient enough to withstand a hard Brexit," according to the Deputy Governor of the Central Bank, Ed Sibley.

Speaking today at a PwC and Insurance Ireland briefing, Mr Sibley raised some of the key future challenges that insurance firms need to better prepare for, including Brexit and climate change.

Urging chief executives to prepare for the possibility of the UK leaving the European Union without a deal, he said that not all regulated firms were adequately prepared.

“There is no excuse for this, even accepting that there remains considerable uncertainty,” Mr Sibley said.

“You owe all your stakeholders, including and most importantly your customers, a duty of care to ensure that you are prepared,” he added.

Referring to the increasingly big topical of climate change, he said it presented a “major challenge” for insurance firms.

“It is clear that the worst possible year is getting worse every year,” Mr Sibley said, adding that he expects “the insurance industry to play a positive and proactive role in shaping the wider response to climate change risks.”

Elsewhere, Mr Sibley said too many insurance firms are “not getting the fundamentals right” with ineffective technology risk management practices, “weaknesses in IT security, a lack of effective oversight of IT, and weaknesses in the management of outsourcing.”

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