FSB finalizes guidance on insurer recovery and resolution planning
The Financial Stability Board (FSB) has published its finalized guidance for authorities to assess which insurers are subject to recovery and resolution planning (RRP) requirements. This guidance offers a structured approach consistent with the FSB Key Attributes of Effective Resolution Regimes.
Six criteria for RRP scope
The guidance outlines six key criteria for authorities to evaluate an insurer's RRP requirements: nature, scale, complexity, substitutability, cross-border activities, and interconnectedness.
It also identifies specific circumstances where RRP applies, such as when an insurer provides a critical function or its failure would materially impact the financial system and/or the real economy of the jurisdiction.
This framework is intended to align with the International Association of Insurance Supervisors' Insurance Core Principles.
The guidance promotes consistency in applying the Key Attributes across jurisdictions, while allowing flexibility for differences in market structures, legal frameworks, and supervisory practices.
It may also assist authorities in determining which insurers to report for the FSB's annual list of insurers subject to resolution planning standards.
From G-SIIs to a holistic view
In 2025, the FSB decided to use the International Association of Insurance Supervisors' Holistic Framework assessments, moving away from annual identification of global systemically important insurers (G-SIIs).
This finalized guidance reflects public feedback received on a prior consultation on draft criteria for RRP requirements.
The FSB coordinates international financial authorities and standard-setting bodies, developing policies for financial stability.
It brings together national authorities from 24 countries, international financial institutions, and central bank experts, also engaging with approximately 70 other jurisdictions through its Regional Consultative Groups.
A step towards clarity
This finalized guidance provides much-needed clarity for authorities navigating complex insurer resolution planning.
It marks a significant step towards a more consistent and robust global framework for managing systemic risks in the insurance sector.
While offering flexibility, the framework underscores the imperative for proactive risk management and cross-border coordination.