The Financial Stability Board (FSB) has published an updated list of insurers that are subject to resolution planning standards. The list now includes 17 insurers, up from 13 in 2024. These insurers must comply with standards aligned with the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions.
In addition to updating the list, the FSB has started a consultation on draft guidance for authorities regarding which insurers should be subject to recovery and resolution planning (RRP) requirements. According to the FSB, "the draft guidance calls for authorities to evaluate an insurer’s nature, scale, complexity, substitutability, cross-border activities, and interconnectedness." It also specifies situations where RRP requirements should always apply, such as when an insurer provides critical functions that cannot be easily replaced or if its failure could significantly affect financial stability or the real economy.
The new guidance does not bring back the previous process for identifying global systemically important insurers (G-SIIs). Instead, it focuses on setting criteria at the national level for determining which insurers need to follow RRP requirements under the Key Attributes. The FSB stated that being included on this list does not mean an insurer is considered systemically important.
The FSB reaffirmed its approach of using assessments from the International Association of Insurance Supervisors (IAIS) Holistic Framework rather than conducting annual G-SII identifications. "The FSB has also published a statement reaffirming its decision to rely on the IAIS Holistic Framework assessments rather than reintroducing the annual identification of G-SIIs," according to its announcement.
Since December 2022, the FSB has used these IAIS assessments instead of annual G-SII lists and now publishes each year a list of insurers subject to resolution planning standards based on these evaluations. The first such list was released in December 2024.
The IAIS is responsible for promoting effective supervision across more than 200 jurisdictions and aims to support fair and stable insurance markets worldwide. The organization launched its own consultation today on application papers concerning recovery and resolution practices in the insurance sector.
The FSB coordinates international efforts among national financial authorities and standard-setting bodies to promote regulatory policies that support financial stability. It is chaired by Andrew Bailey, Governor of the Bank of England. The Secretariat is based in Basel, Switzerland at the Bank for International Settlements.
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