Insurers' resolution planning scope under FSB consultation
The Financial Stability Board (FSB) is inviting comments on draft guidance for determining which insurers should be subject to recovery and resolution planning (RRP) requirements. The consultation outlines criteria such as nature, scale, and cross-border activities, with responses due by February 6, 2026.
Six criteria for RRP applicability
The draft guidance offers a structured approach for authorities to assess which insurers should be subject to RRP requirements.
It outlines six key criteria: nature, scale, complexity, substitutability, cross-border activities, and interconnectedness.
These criteria aim to balance consistency across jurisdictions with flexibility for market structures, legal frameworks, and supervisory practices.
The guidance also identifies specific circumstances where RRP requirements should always apply, such as when an insurer provides critical functions that cannot be easily substituted or whose failure would significantly affect financial stability or the real economy.
The overall goal is to support authorities in mitigating potential disruptions from the stress or failure of certain insurers.
Tailored assessments replace G-SII identification
The FSB adopted the Key Attributes in 2011, most recently revised in 2024, to establish effective resolution regimes.
These RRP requirements apply to all insurers that could be systemically significant or critical upon failure.
In 2022, the FSB discontinued identifying Global Systemically Important Insurers (G-SIIs).
This new guidance replaces that process, focusing on national authorities determining RRP applicability based on established criteria.
The guidance draws from the IAIS Insurance Core Principles (ICPs) and their supporting guidance, ensuring close alignment and consistency in standards.