Latvia's Ministry of Finance, in cooperation with the Bank of Latvia, has submitted for public consultation two draft laws that would establish a recovery and resolution framework for insurance and reinsurance undertakings and update the existing recovery and resolution law for credit institutions and investment brokerage firms. The proposed framework is intended to support financial stability while protecting the interests of policyholders and insured persons. The drafts implement the EU’s harmonised insurance recovery and resolution regime under Directive (EU) 2025/1, building on the Solvency II prudential framework. The ministry frames the changes as enabling resolution authorities to act quickly and effectively in severe financial distress to protect policyholders, maintain financial stability, and minimise reliance on extraordinary public sector financial support. The directive also targets fragmentation of national regimes and emphasises recovery and resolution planning, early intervention and coordinated crisis management for cross-border insurance groups. Both draft laws are available for review through Latvia’s Legislative Acts Portal as part of the public consultation process.
Ministry of Finance (Latvia) 2026-03-19
Latvia's Ministry of Finance opens consultation on draft insurance recovery and resolution regime and related amendments to bank resolution law
Latvia's Ministry of Finance and the Bank of Latvia have proposed draft laws for public consultation to establish a recovery and resolution framework for insurance and reinsurance undertakings and update the framework for credit institutions and investment brokerage firms. The drafts align with the EU's Directive (EU) 2025/1, enhancing financial stability and policyholder protection while minimizing public sector financial support. The initiative aims to harmonize national regimes and improve crisis management for cross-border insurance groups.