Members' Research Service By / December 20, 2022

Insurance recovery and resolution directive [EU Legislation in Progress]

The prudential regulatory framework for the insurance industry in the European Union (EU) is governed by the Directive of 25 November 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II, Directive 2009/138/EC), which entered into force on 1 January 2016.

© Mathias Rosenthal / Adobe Stock

Written by Issam Hallak (2nd edition, updated on 02.10.2023).

In 2020, the Commission launched a review of the Solvency II Directive, the EU’s legal prudential regulatory framework for (re-)insurance companies, which entered into force in 2016. As one output of the review, the Commission made a proposal in September 2021 for a new directive establishing a framework for recovery and resolution of insurance companies – the ‘IRRD proposal’.

The IRRD proposal would establish harmonised recovery and resolution tools and procedures, with enhanced cross-border cooperation between national authorities. The proposal adopts the ‘pre‑emptive’ approach whereby insurance companies must submit plans to the supervisory authorities, which would be given powers to implement resolutions. The proposal also sets out a range of tools for resolutions.

Versions

Regulation amending Regulation (EU) No 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institution groups with a multiple point of entry resolution strategy and a methodology for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities
Committee responsible:Economic and Monetary Policy (ECON)COM(2021)582
22.9.2021
Rapporteur:Markus Ferber (EPP, Germany)2021/0296(COD)
Shadow rapporteurs:Aurore Lalucq (S&D, France),
Stéphanie Yon-Courtin (Renew, France),
Henrike Hahn (Greens/EFA, Germany),
Marco Zanni (ID, Italy),
Johan van Overtveldt (ECR, Belgium),
Chris MacManus (The Left, Ireland)
Ordinary legislative procedure
(COD) (Parliament and Council
on equal footing
– formerly ‘co-decision’)
Next steps expected: Trilogue
timeline

Related Articles

Be the first to write a comment.

Leave a Reply