Resolution regimes must reflect fact insurer failures are rare and have limited impact on financial stability
21 March 2022
GFIA has responded to a consultation conducted by the Financial Stability Board on its practice papers on resolution funding and internal interconnectedness in resolution planning for insurers.
GFIA noted the fact that insurance company failures are rare and the circumstances whereby such failures could or would have any material impact on critical functions of financial stability are extremely limited.
Resolution regimes therefore should:
- Ensure the continuity of critical functions resulting from the activity of an insurer.
- Avoid or mitigate negative effects on financial stability.
- Protect the rights of policyholders, underwriters, members, participating members, and beneficiaries of insurance coverage.
