The European Insurance and Occupational Pensions Authority has published seven instruments to support implementation of the Insurance Recovery and Resolution Directive, comprising four guidelines and three draft regulatory technical standards. The package develops the operational detail for insurers’ pre-emptive recovery planning and for key resolution tools, including confidentiality rules, simplified obligations, independent valuations, contractual recognition of stay powers and the valuation of derivative liabilities. It advances the framework that is due to become operational in 2027 and brings the number of finalised and submitted IRRD instruments to 15 out of 19. The recovery-planning guidelines set the stress scenarios insurers should use to test the credibility and feasibility of pre-emptive recovery plans, covering both system-wide and insurer-specific shocks such as mass policy lapses and underwriting losses, with impacts assessed on solvency, liquidity and profitability. Separate guidelines define qualitative and quantitative recovery-plan indicators across capital, liquidity, asset quality, profitability, market, macroeconomic and operational factors; specify when confidential information may be disclosed in summary or collective form without identifying individual entities; and detail the criteria authorities should consider when assessing eligibility for simplified obligations, including business nature, ownership structure, legal form, risk profile, size, interconnectedness and the scope and complexity of activities. The draft RTS set conditions for a valuer to be considered independent from both the resolution authority and the entity in resolution, standardize contractual terms to support recognition of resolution stay powers in financial contracts governed by third-country law, and establish methods and principles for valuing liabilities arising from derivatives in resolution. The remaining four IRRD instruments will be merged into two draft RTS and consulted on shortly. EIOPA said the current package follows public consultations held from December 2025 to March 2026.
European Insurance and Occupational Pensions Authority2026-07-08
European Insurance and Occupational Pensions Authority publishes seven Insurance Recovery and Resolution Directive instruments and brings completed measures to 15 of 19
The European Insurance and Occupational Pensions Authority has issued seven IRRD instruments, including four guidelines and three draft RTS, to flesh out insurers’ recovery planning and key resolution mechanics. The measures cover stress scenarios, recovery indicators, confidentiality, simplified obligations, valuer independence, contractual recognition of stay powers and derivative liability valuation. This brings EIOPA’s completed and submitted IRRD measures to 15 of 19 ahead of the regime’s 2027 start.