10 Nov 2022
The European Insurance and Occupational Pensions Authority (EIOPA) published today two staff papers to provide more clarity on recovery and resolution in insurance and thereby support a better understanding of the topic among stakeholders. The papers focus, in particular, on the proposal for an Insurance Recovery and Resolution Directive (IRRD) put forward by the European Commission in September 2021.
In the first staff paper, EIOPA answers stakeholders’ most frequently asked questions relating to IRRD. The FAQ covers a wide range of topics such as pre-emptive actions, exemption from planning requirements for specific undertakings, cross-border insurers, EIOPA’s role in the process and the question of funding.
In its second staff paper, EIOPA conducted a comparative analysis of IRRD and the Bank Recovery and Resolution Directive (BRRD) to identify similarities and differences between the two legal texts. The analysis confirmed that the European Commission’s IRRD proposal has some common elements with the BRRD while also differing from it significantly. EIOPA considers that the similarities included are warranted since they concern areas where there is no need for sectoral specificities (e.g. cross-border resolution, penalties in case of law infringement etc.). On the other hand, important differences are foreseen regarding fundamental elements of recovery and resolution, such as resolution tools and preparation, which duly reflect the specificities of the insurance sector.
READ THE COMPARATIVE ANALYSIS BETWEEN IRRD AND BRRD
Background
The two staff papers are to be seen as part of a series of staff papers on IRRD. They are also a follow-up to the staff paper published in July 2022 which provided a general overview of the proposal for an IRRD.
In the context of the IRRD, EIOPA would also like to inform that a Public Event on recovery and resolution in (re-)insurance will be held on 18 November 2022. Details on the agenda and speakers can be found here: Technical Seminar on recovery and resolution in (re-) insurance | Eiopa (europa.eu).