The European Insurance and Occupational Pensions Authority has submitted technical advice to the European Commission recommending targeted minimum standards for insurance guarantee schemes across the EU. Building on its earlier work and consultation, the approach seeks to reduce disparities in policyholder protection when insurers fail while preserving national flexibility and supporting operational readiness under the Insurance Recovery and Resolution Directive. Common coverage would focus on life and non-life policies whose loss could cause the greatest financial hardship, taking account of cross-border business. EIOPA also recommends harmonised activation triggers, common claim-submission periods and a maximum payout deadline, with countries free to pay sooner. Schemes should receive the same insolvency ranking as insurance claims and maintain adequate liquidity safeguards, while member states would retain discretion over the form and scale of funding. Given the continuing national implementation of the resolution directive, the advice sets general principles for its interaction with guarantee schemes, including formal cooperation between national resolution authorities and the schemes. The advice will inform the Commission’s assessment of whether EU minimum standards are appropriate. The Commission must report to the European Parliament and the Council by January 2027 and may accompany its report with a legislative proposal.

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