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.
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.
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.
EIOPA
FAQ
Comparison banking v insurance
© EIOPA
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