Insurance Recovery and Resolution Directive – Estimated Implementation Timeline

Earlier last month, in early November 2024, the Council of the European Union adopted legislation aimed at introducing new rules on insurance recovery and resolution. The Insurance Recovery and Resolution Directive (“IRRD”) is designed to create a framework for a pre-emptive recovery planning and resolution regime to ensure that insurers and relevant authorities in the European Union are better prepared for situations of significant financial distress and to facilitate early and quick intervention of the authorities, even across borders. The IRRD will establish harmonised recovery and resolution tools and procedures, with enhanced cross-border cooperation between national authorities with the intention to create an anticipatory approach to protect insurance policyholders, minimise the impact on the economy and the financial system and avoid recourse to taxpayers’ money.

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Author: Emma Cassar Torreggiani