The European Insurance and Occupational Pensions Authority (EIOPA) has launched seven consultations on draft guidelines and regulatory technical standards to support implementation of the European Union’s Insurance Recovery and Resolution Directive (IRRD), which is set to become operational in January 2027. The package covers key elements of pre-emptive recovery planning and resolution execution, including recovery plan scenarios and indicators, criteria for simplified obligations, and several aspects of valuation and contractual safeguards in resolution. The draft Guidelines include a set of macroeconomic, financial and insurance-specific stress scenarios to test the credibility and feasibility of recovery plans, and a framework of qualitative and quantitative indicators spanning capital and liquidity positions, asset quality, profitability, market and macro conditions and operational events. Further Guidelines address the provision of information by setting rules for the use of exemptions to professional secrecy for confidential information disclosed in summary or collective form, and define eligibility criteria for simplified obligations using factors such as business nature, shareholding structure, legal form, risk profile, size, legal status, interconnectedness metrics and the scope and complexity of activities. The draft Regulatory Technical Standards (RTS) cover the independence conditions for valuers in resolution, standardized contractual terms to ensure recognition of resolution stay powers in financial contracts governed by third-country law, and methodologies and principles for valuing liabilities arising from derivatives during resolution. Stakeholder feedback is due via EIOPA’s online surveys by 20 March 2026, with responses to be published unless otherwise requested. EIOPA will consider the input received before finalizing the policy instruments.

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