Thanks to Gill Kelly for this information below.
As many as 40 % of ALs could be affected .
Some folk who let out their properties via an AL licence MUST in the next few days go online to eportugal.gov.pt to register their liability insurance. Emails were sent in April informing us of this but some folk did not get them and they are now starting to withdraw licences of those who have not done so, and you will not be able to get a new registration. If you do not have liability insurance you must get it then register it NOW.
However to register it you need a Digital Pin, it took me a long time to find out what this is and how to get one. You go to Loja Do Cididao in Funchal, take ticket 4, and go to the desk 4, if you are not a Portuguese national you will need not only your residence card but your passport too and your mobile phone as confirmation codes will be sent to it while you are there for you to type in.
Then once you have set one up, go to the site above and search for Submit my Insurance for my Alojamento Local, search it on the list, click and follow the procedure, and note that you must re-register every time your insurance renews.