The European Insurance and Occupational Pensions Authority (EIOPA) said that “further harmonisation would be desirable in the area of national Insurance Guarantee Schemes”, concluding the background paper on the proposed Insurance Recovery and Resolution Directive (IRRD) published on Thursday 10 November.
Presented by the European Commission in September 2021 (see EUROPE 12795/1), the directive provides for resolution in the event of the failure of an insurer, the organisation of insurance payment default and funding to protect policyholders and taxpayers, as already happens with banks.
In its analysis, EIOPA confirms that the IRRD proposal does indeed have elements in common with the ‘BRRD’ on bank recovery and resolution. The IRRD proposal, however, maintains significant differences to properly reflect features specific to (re)insurance.
Furthermore, “the treatment of conglomerates also needs to be clarified” according to EIOPA.
It regrets that its comprehensive proposal in the context of its 2020 opinion on the Solvency II review has not been taken into account in the Commission’s current proposal.
The text is currently under discussion in the European Parliament (see EUROPE 12936/19).
To view the EIOPA background paper: https://aeur.eu/f/41r (Original version in French by Anne Damiani)