Recital 14

Directive (EU) 2025/1 of the European Parliament and of the Council of 27 November 2024 establishing a framework for the recovery and resolution of insurance and reinsurance undertakings and amending Directives 2002/47/EC, 2004/25/EC, 2007/36/EC, 2014/59/EU and (EU) 2017/1132 and Regulations (EU) No 1094/2010, (EU) No 648/2012, (EU) No 806/2014 and (EU) 2017/1129 (Text with EEA relevance) · European Union

(14) With the new rules introduced by this Directive, insurance and reinsurance resolution authorities, and banking resolution authorities, will each have their own framework for resolution that is adapted to the specificities of the insurance and reinsurance sectors as well as the banking sector. The timescale of a resolution in an insurance and reinsurance context is different from a resolution in a banking context. In order to prevent a bank run, the Single Resolution Board and national banking resolution authorities typically need to act swiftly. Insurance and reinsurance resolution authorities, on the other hand, often have the benefit of having more time to find the proper solutions that are most beneficial for policy holders. An event similar to a bank run is less likely to happen in the insurance and reinsurance sector, and the consequences of such an event would be different than in the banking sector.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-14 · Text as adopted (Official Journal); later amendments are not incorporated in this text.