D&O Insurance: Impact Of Individual Accountability Framework

The Central Bank (Individual Accountability Framework) Act 2023 ('the Act') has been introduced with the aim of providing for enhanced individual accountability and to promote positive behaviour and improved governance in regulated financial service providers. The Act has been signed into law and is partially operational. A key element of the Act is the Senior Executive Accountability Regime ('SEAR') (discussed here), which places obligations on certain firms and their senior individuals to set out clearly where responsibility and decision-making lies and to identify what those responsibilities entail. In this article, we will consider possible consequences of the new regime on directors and officers liability insurance ('D&O insurance') and what factors need to be considered in terms of coverage.