Recital 5

(5) The global financial crisis of 2008 highlighted the need to develop an appropriate recovery and resolution framework for insurance and reinsurance undertakings. At international level, the Financial Stability Board published in October 2011, and updated in October 2014, the document ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’, encompassing considerations on the resolution of any insurance undertaking that could be systemically significant or critical if it fails. In June 2016, the Financial Stability Board released complementary guidance on developing effective resolution strategies and plans for systemically important insurers. In parallel, the International Association of Insurance Supervisors adopted in November 2019 ‘Insurance Core Principles’ for all insurance and reinsurance undertakings, a ‘Common Framework for Internationally Active Insurance Groups’ detailing standards for pre-emptive recovery planning, and actions that authorities are expected to take towards an insurance or reinsurance undertaking that would exit the market and enter into resolution. Those developments should be taken into account when laying down a framework for the recovery and resolution of failing insurance and reinsurance undertakings.

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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.