Ireland's Department of Finance has opened a public consultation on how Ireland will transpose the European Union’s Insurance Recovery and Resolution Directive (EU) 2025/1 (IRRD) into national law, with a focus on the Member State discretions available under the Directive. The IRRD, which entered into force on 28 January 2025 and must be transposed by 28 January 2027, establishes a harmonised recovery and resolution framework for insurance and reinsurance undertakings in the EU. It is designed to support early and effective intervention in situations of significant financial distress, including in cross-border cases, with objectives including protection of policyholders and claimants, maintenance of financial stability, continuity of critical functions, and minimising reliance on extraordinary public financial support. The Directive provides National Resolution Authorities with a range of resolution tools and requires Member States to put in place a financial arrangement to ensure adequate funding for resolution, consistent with the No Creditor Worse Off principle, with Ireland able to choose between ex-ante, ex-post or hybrid funding approaches and whether additional resolution costs are covered. Submissions are accepted until 5 September 2025 and will be taken into account in drafting the proposed transposition regulations.

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