The European Insurance and Occupational Pensions Authority (EIOPA) published today six key instruments related to the implementation of the Insurance Recovery and Resolution Directive (IRRD). The package includes guidelines and technical standards covering different aspects of the framework, such as pre-emptive recovery plans, resolution plans and resolvability of insurance undertakings and groups.
The IRRD, which is set to become operational in 2027, introduces a recovery and resolution framework tailor-made for (re)insurers in Europe. The Directive puts the focus on the importance of pre-emptive planning and effective crisis management, and aims at resolving insurance and reinsurance undertakings in a way that minimises the negative impact of a failure on policyholders, taxpayers, the real economy and financial stability.
Under the IRRD, EIOPA is mandated to develop a set of technical standards (RTS/ITS) and guidelines for the application of recovery and resolution frameworks. This first batch supports the practical implementation of the IRRD, covering aspects such as pre-emptive recovery plans, resolution plans, resolvability assessment and the criteria to identify critical functions.
Final report on the Draft Regulatory Technical Standards (RTS) on the content of pre-emptive recovery plans
The draft RTS further specifies the minimum elements that should be included in the (group) pre-emptive recovery plan of (re)insurers subject to pre-emptive recovery planning requirements. These include the description of the undertaking or group, the framework of indicators, the range of remedial actions, and the communication strategy. The primary objective of the draft RTS is to ensure that (re)insurers maintain a robust and effective plan in place to restore their financial position in the event of significant deterioration.
In developing the draft RTS, consideration was given to simplifying the requirements and reducing the burden on (re)insurers. To achieve this, several measures have been introduced, including a streamlined credibility and feasibility assessment, which only require the presentation of the assessment outcome, rather than a comprehensive assessment. The draft RTS also envisages the possibility of supervisory authorities to accept cross-references to other documents previously submitted to the supervisor, and excludes critical function requirements, resulting in a reduction in the overall burden for entities.
Final report on the Draft Regulatory Technical Standards on criteria for pre-emptive recovery planning requirements and methods to be used when determining the market shares
The draft RTS sets specific criteria for selecting which (re)insurers undertakings and groups should be required to prepare pre-emptive recovery plans and details the methods for calculating the market share of undertakings subject to these requirements, ensuring that at least 60% of the respective market is covered.
The draft RTS allows supervisory authorities to make use of existing supervisory reporting when assessing the insurance or reinsurance undertakings or groups and when calculating the market share, including the own risk and solvency assessment (ORSA) and the liquidity risk management plans. Moreover, the draft RTS leaves room for flexibility, as no methodology is prescribed for the combination of criteria. This approach limits data requests and avoids additional burden on national competent authorities, insurance and reinsurance undertakings and groups.
Final report on the Draft Regulatory Technical Standards on the content of resolution plans and group resolution plans
The draft RTS sets out the minimum elements that have to be included in resolution plans and group resolution plans. The provisions are aimed to provide a framework ensuring operational preparation for resolution, particularly emphasizing the analysis and planning of various resolution strategies that might be required to be implemented under various resolution scenarios, to increase the level of operationalization and optionality in resolution planning.
In developing this draft RTS, EIOPA ensured consistency with other relevant regulations , providing a clear and general set of minimum content requirements for resolution plans and group plans, enabling resolution authorities to apply the provisions in a flexible way to a range of business models.
Final report on the Guidelines on the criteria for the identification of critical functions
The Guidelines set out the criteria for the identification of critical functions, the disruption of which could have a severe impact on policyholders, beneficiaries and the broader economy, including financial stability. The IRRD requires resolution authorities to draft resolution plans for those (re)insurers identified as performing critical functions.
In developing these Guidelines, EIOPA added several features to better capture economic and legal reality, as well as national specific features, while making sure that key concepts and principles used in the identification of critical functions are duly observed. The Guidelines are developed considering the work of international bodies such as the International Association of Insurance Supervisors (IAIS) and the Financial Stability Board (FSB).
Final report on the Guidelines on the assessment of resolvability
The Guidelines further specify the criteria for the assessment of the resolvability of undertakings or groups, including regarding the feasibility and credibility of the selected resolution strategy, with a focus on the resolvability dimensions specified in the Annex of the IRRD.
The Guidelines promote a level-playing field between Member States by providing a minimum framework of elements to be considered in the assessment of resolvability, while retaining discretion for resolution authorities to adjust the assessment to the specifics of the undertakings and groups in the scope of resolution planning.
Final report on the Guidelines on measures to remove impediments to resolvability and the circumstances in which each measure may be applied
The provisions in these Guidelines relate to the alternative measures that resolution authorities may take to address or remove impediments to the resolvability of the insurance or reinsurance undertakings or groups in their scope of resolution planning.
The Guidelines are limited to the alternative measures listed in Art. 15(5) of the IRRD, specifying further details on those measures and the circumstances in which they may be applied, allowing resolution authorities a degree of flexibility in the application. Moreover, they include several provisions for resolution authorities related to the proportionate application of the measures, including the requirement to duly weigh the potential effect of such measures on the undertaking’s business.
Background
In developing the instruments listed above, EIOPA gathered feedback through public consultations from April to July 2025. EIOPA has sought to minimise the burden on authorities and undertakings, simplify the regulation, while making sure the instruments remain robust.
Specific examples of burden reduction and simplification measures put in place for each instrument can be found in this annex.
For each instrument, EIOPA is also publishing the respective impact assessments and feedback statements relating to the public consultations.
For more information on the IRRD – its objectives, key elements and the expected implementation timeline – visit the dedicated section of our website.
Details
- Publication date
- 16 February 2026