The European Insurance and Occupational Pensions Authority published a package of six instruments to support implementation of the Insurance Recovery and Resolution Directive (IRRD), setting out detailed requirements and supervisory expectations for pre-emptive recovery planning, resolution planning, and the assessment and improvement of resolvability for insurance and reinsurance undertakings and groups. The IRRD is intended to become operational in 2027 and establishes an EU recovery and resolution framework for (re)insurers. The package includes three draft Regulatory Technical Standards (RTS) and three sets of guidelines. The RTS on the content of pre-emptive recovery plans specifies minimum elements such as the undertaking or group description, an indicators framework, remedial actions and a communication strategy, and introduces burden-reduction features including a streamlined credibility and feasibility assessment (outcome only), the use of cross-references to previously submitted documents, and the exclusion of critical function requirements. A separate RTS sets criteria for determining which undertakings and groups must prepare pre-emptive recovery plans and the methods for market share calculations, with a requirement that at least 60% of the relevant market is covered, and it allows use of existing supervisory reporting such as ORSA and liquidity risk management plans while leaving flexibility in how selection criteria are combined. The RTS on resolution plans sets minimum content requirements for resolution and group resolution plans, with an emphasis on preparing and analysing alternative resolution strategies across scenarios. The guidelines cover criteria for identifying critical functions, criteria for resolvability assessments including the feasibility and credibility of the selected resolution strategy, and measures resolution authorities may use to address impediments to resolvability, limited to the alternatives listed in Article 15(5) of the IRRD and framed with proportionality considerations. EIOPA also published related impact assessments and feedback statements reflecting public consultations held from April to July 2025.
European Insurance and Occupational Pensions Authority 2026-02-16
European Insurance and Occupational Pensions Authority publishes six IRRD recovery and resolution instruments including a 60% market coverage test for pre-emptive recovery plans
The European Insurance and Occupational Pensions Authority released six instruments to aid the implementation of the Insurance Recovery and Resolution Directive (IRRD), detailing requirements for recovery and resolution planning for insurers and reinsurers. The package includes three draft Regulatory Technical Standards (RTS) and three sets of guidelines, focusing on pre-emptive recovery plans, resolution plans, and resolvability assessments. The IRRD, operational in 2027, establishes an EU framework for insurer recovery and resolution.