CHAPTER I — Pre-emptive recovery planning and resolution planning
Section 1 — General provisions
Simplified obligations for certain undertakings
1. Taking into account the impact that the failure of an insurance or reinsurance undertaking could have, due to the nature of its business, its shareholding structure, its legal form, its risk profile, size and legal status, its interconnectedness to other regulated undertakings or to the financial system in general, the scope and the complexity of its activities, and whether its failure and subsequent winding-up under normal insolvency proceedings would be likely to have a significant negative effect on financial markets, on other undertakings, on policy holders, on funding conditions, or on the wider economy, Member States shall ensure that supervisory and resolution authorities determine whether simplified obligations can apply for certain insurance and reinsurance undertakings and groups with respect to:
(a)
the contents and details of pre-emptive recovery plans provided for in Articles 5 to 8 and resolution plans provided for in Articles 9 to 12;
(b)
the date by which the first pre-emptive recovery and resolution plans are to be drawn up and the frequency for updating pre-emptive recovery and resolution plans, which may be lower than the frequency provided for in Article 5(4), Article 7(3), Article 9(5) and Article 11(3);
(c)
the content and level of detail of the information required from undertakings pursuant to Article 5(6), Article 7(3), Article 10(2) and Article 12(1);
(d)
the level of detail for the assessment of resolvability provided for in Articles 13 and 14.
2. EIOPA shall, by 29 July 2027, issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further details on the criteria referred to in paragraph 1, introductory part, of this Article.
3. Member States shall require the supervisory authorities or the resolution authorities, as applicable, to provide EIOPA, on an annual basis and for each Member State separately, with all of the following information:
(a)
the number of insurance and reinsurance undertakings and groups subject to pre-emptive recovery planning and resolution planning pursuant to Articles 5, 7, 9 and 10;
(b)
the number of insurance and reinsurance undertakings and groups subject to simplified obligations as referred to in paragraph 1;
(c)
quantitative information on the application of the criteria referred to in paragraph 1, introductory part;
(d)
a description of the simplified obligations applied on the basis of the criteria referred to in paragraph 1, introductory part, as compared to the full obligations, together with the volume of capital requirements, premiums, technical provisions and assets, measured as percentages of the total volume of, respectively, capital requirements, premiums, technical provisions and assets of the insurance and reinsurance undertakings of the Member States or of all the groups, as applicable.
4. EIOPA shall publicly disclose, on an annual basis and for each Member State separately, the information referred to in paragraph 3, points (a) to (d), together with an assessment of any divergences regarding the implementation of paragraph 1 at national level.
Section 2 — Pre-emptive recovery planning
Pre-emptive recovery plans
1. Member States shall ensure that insurance and reinsurance undertakings that are not part of a group subject to pre-emptive recovery planning pursuant to Article 7, and that meet the criteria laid down in paragraph 2 or 3 of this Article, draw up and keep updated a pre-emptive recovery plan. That pre-emptive recovery plan shall contain measures to be taken by the undertaking concerned to restore its financial position where that position has significantly deteriorated.
The drawing up, keeping up-to-date and application of pre-emptive recovery plans shall be considered to be part of the system of governance within the meaning of Article 41 of Directive 2009/138/EC.
2. Member States shall ensure that the supervisory authority subjects insurance and reinsurance undertakings to pre-emptive recovery planning requirements on the basis of their size, business model, risk profile, interconnectedness and substitutability, their importance for the economy of the Member States in which they operate, and their cross-border activities, in particular significant cross-border activities.
Supervisory authorities shall ensure that at least 60 % of the Member State’s life insurance and reinsurance market and at least 60 % of its non-life insurance and reinsurance market – the life market share being based on gross technical provisions and the non-life market share being based on gross written premiums – are subject to pre-emptive recovery planning requirements pursuant to this Article.
In the calculation of the market coverage level referred to in the second subparagraph, the subsidiary insurance or reinsurance undertakings of a group may be taken into account where those subsidiary insurance or reinsurance undertakings are part of a group for which the ultimate parent undertaking is drawing up and maintaining a group pre-emptive recovery plan.
3. Any insurance or reinsurance undertaking which is subject to a resolution plan shall be subject to pre-emptive recovery planning requirements.
Small and non-complex undertakings shall not be subject to pre-emptive recovery planning requirements, except where a supervisory authority considers that such an undertaking represents a particular risk at national or regional level.
4. Supervisory authorities shall ensure that insurance and reinsurance undertakings update their pre-emptive recovery plans at least every two years, and in any case:
(a)
after a change to the legal or organisational structure of the undertaking, to its business or to its financial position which could have a material effect on, or necessitates a material change to, the pre-emptive recovery plan;
(b)
when a material change to the financial position of the undertaking that could have a material effect on the effectiveness of the plan, or otherwise necessitate a revision of the pre-emptive recovery plan, becomes foreseeable.
5. Pre-emptive recovery plans shall not assume any access to or receipt of extraordinary public financial support.
6. Member States shall require that pre-emptive recovery plans contain all of the following:
(a)
a summary of the key elements of the plan, including material changes to the most recently submitted plan;
(b)
a description of the undertaking or the group, including a summary of any material changes since the most recently submitted plan;
(c)
a framework of indicators as referred to in paragraph 8;
(d)
a description of how the pre-emptive recovery plan has been drawn-up, how it will be updated and how it will be applied;
(e)
a range of remedial actions;
(f)
a communication strategy.
(g)
where the undertaking has breached the Solvency Capital Requirement laid down in Title I, Chapter VI, Section 4, of Directive 2009/138/EC and submitted a recovery plan in accordance with Article 138(2) of Directive 2009/138/EC at some point in the last 10 years, that recovery plan as well as an assessment of the measures taken to restore the undertaking’s compliance with the Solvency Capital Requirement.
7. Member States shall require that insurance and reinsurance undertakings assess the credibility and feasibility of their pre-emptive recovery plans, in particular the framework of indicators referred to in paragraph 8 and the remedial actions, against a range of scenarios of severe macroeconomic and financial stress relevant to the insurance or reinsurance undertaking’s specific conditions, including system-wide events, idiosyncratic stress events likely to materially affect their asset and liability profile, and combinations of such stress events.
8. Member States shall require that insurance and reinsurance undertakings ensure that their pre-emptive recovery plans contain a framework of qualitative and quantitative indicators that identify the points at which remedial actions should be considered or taken. Those indicators may include criteria relating to, inter alia, capital, liquidity, asset quality, profitability, market conditions, macro-economic conditions and operational events. Indicators relating to the capital position shall as a minimum contain any breach of the Solvency Capital Requirement laid down in Title I, Chapter VI, Section 4, of Directive 2009/138/EC.
Member States shall require that any breach of the Solvency Capital Requirement result in appropriate remedial action by the undertaking concerned in line with the pre-emptive recovery plan.
Member States shall require that supervisory authorities ensure that insurance and reinsurance undertakings put in place appropriate arrangements for the regular monitoring of the indicators referred to in the first subparagraph.
9. An insurance or reinsurance undertaking that decides to take a remedial action contained in its pre-emptive recovery plan, or that decides to refrain from taking such remedial action even though an indicator as referred to in paragraph 8, first subparagraph, has been met, shall notify such decision to the supervisory authority without delay.
10. The administrative, management or supervisory body of an insurance or reinsurance undertaking as referred to in paragraph 1 shall assess and approve the pre-emptive recovery plan before submitting it to the supervisory authority for review.
11. EIOPA shall, by 29 January 2027, issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further:
(a)
in cooperation with the European Systemic Risk Board, the range of scenarios referred to in paragraph 7 of this Article;
(b)
the qualitative and quantitative indicators referred to in paragraph 8 of this Article.
12. EIOPA shall develop draft regulatory technical standards to specify further:
(a)
the criteria, in particular as regards cross-border activity, referred to in paragraph 2, first subparagraph;
(b)
the methods to be used when determining the market shares referred to in paragraph 2, second and third subparagraphs;
(c)
the information that an insurance or reinsurance undertaking is to include in the pre-emptive recovery plan, including the remedial actions referred to in paragraph 6, point (e), and their implementation.
EIOPA shall submit those draft regulatory technical standards to the Commission by 29 July 2026.
Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
Review and assessment by supervisory authorities of pre-emptive recovery plans
1. Supervisory authorities shall, within nine months of the submission of each pre-emptive recovery plan, review that plan and assess the extent to which it satisfies the requirements laid down in Article 5 and all of the following:
(a)
whether the implementation of the arrangements proposed in the plan is reasonably likely to maintain or restore within an appropriate timeframe the viability and financial position of the insurance or reinsurance undertaking;
(b)
whether the plan and specific options within the plan are reasonably likely to be implemented quickly and effectively in situations of financial stress;
(c)
whether the plan and specific options within the plan are reasonably likely to avoid to the maximum extent possible any significant adverse effect on the financial system, including in scenarios which would lead other insurance and reinsurance undertakings to implement pre-emptive recovery plans within the same period.
2. Supervisory authorities shall provide resolution authorities with all pre-emptive recovery plans they have received. Resolution authorities may examine the pre-emptive recovery plan to identify any actions in the pre-emptive recovery plan which may adversely impact the resolvability of the insurance or reinsurance undertakings concerned and make recommendations to the supervisory authority with regard to those matters within the period set out in paragraph 1.
3. Where an insurance or reinsurance undertaking carries out significant cross-border activities, the home supervisory authority shall, upon the request of a host supervisory authority, provide the pre-emptive recovery plan to that host supervisory authority. The host supervisory authority may examine the pre-emptive recovery plan to identify any actions in the pre-emptive recovery plan which may adversely impact policy holders, the real economy or the financial stability in its Member State and make recommendations to the home supervisory authority with regard to those matters. The home supervisory authority shall provide a reasoned reply as to its decision to follow or not the recommendations. Where the home supervisory authority fails to properly take into account the recommendations of the host supervisory authority, the host supervisory authority may refer the matter to EIOPA in accordance with Article 31(2), point (c), of Regulation (EU) No 1094/2010.
4. Supervisory authorities that, after having assessed the pre-emptive recovery plan, conclude that there are material deficiencies in that plan or material impediments to its implementation shall notify the insurance or reinsurance undertaking concerned of the content of their assessment and require the undertaking concerned to submit, within two months, a revised plan demonstrating how those deficiencies or impediments are addressed. That period of two months may be extended by one month, upon request of the undertaking concerned, where the supervisory authority so agrees.
Before requiring an insurance or reinsurance undertaking to resubmit a pre-emptive recovery plan, the supervisory authority shall give the undertaking the opportunity to state its opinion on that requirement.
A supervisory authority that finds that the deficiencies and impediments have not been adequately addressed in the revised plan may instruct the undertaking to make specific changes to the plan.
5. Where the insurance or reinsurance undertaking fails to submit a revised pre-emptive recovery plan, or where the supervisory authority comes to the conclusion that the revised pre-emptive recovery plan does not adequately remedy the deficiencies or impediments identified in its original assessment, and where it is not possible to adequately remedy the deficiencies or impediments through an instruction to make specific changes to the plan, the supervisory authority shall require the undertaking to identify within a reasonable timeframe changes the undertaking can make to its business in order to address the deficiencies in the pre-emptive recovery plan or impediments to the implementation of that plan.
Where the insurance or reinsurance undertaking fails to identify such changes within the timeframe set by the supervisory authority, or where the supervisory authority concludes that the actions proposed by the undertaking would not adequately address the deficiencies or impediments, the supervisory authority may take a reasoned decision to instruct the undertaking to take any measures that the supervisory authority considers to be necessary and proportionate, taking into account the seriousness of the deficiencies and impediments and the effect of the measures on the undertaking’s business.
This decision shall be notified in writing to the insurance or reinsurance undertaking and shall be subject to a right of appeal.
Group pre-emptive recovery plans
1. Member States shall ensure that the group supervisor has the power to require that the ultimate parent undertaking of a group draw up and submit to the group supervisor a group pre-emptive recovery plan.
Group pre-emptive recovery plans shall consist of a pre-emptive recovery plan for the group headed by the ultimate parent undertaking. The group pre-emptive recovery plan shall identify remedial actions that may be required to be implemented at the level of that ultimate parent undertaking and at the level of its individual subsidiary undertakings to restore their financial position where that position has significantly deteriorated.
The group supervisor shall impose the requirement referred to in the first subparagraph on the basis of the criteria referred to in Article 5(2) or (3), as applicable.
2. The group pre-emptive recovery plan shall contain remedial actions to achieve the stabilisation of the group, or of any insurance or reinsurance undertaking of the group, when the group or any of its insurance or reinsurance undertakings is in a situation of stress so as to address or remove the causes of the distress and restore the financial position of the group or the undertaking that is part of the group in question, at the same time taking into account the financial position of other group entities.
The group pre-emptive recovery plan shall contain arrangements to ensure the coordination and consistency of proportionate measures to be taken at the level of the group and the group entities.
3. The group pre-emptive recovery plan, and any plan drawn up for an individual subsidiary insurance or reinsurance undertaking, shall be drawn up in accordance with Article 5(5) to (8), and shall be updated in accordance with Article 5(4).
In accordance with Article 5(8), third subparagraph, appropriate arrangements for the regular monitoring of the indicators shall be put in place.
The group pre-emptive recovery plan shall identify whether there are obstacles to the implementation of remedial actions within the group, including at the level of individual entities covered by the plan, and whether there are substantial practical or legal impediments to the prompt transfer of own funds or the repayment of liabilities or assets within the group.
4. Supervisory authorities may require subsidiary insurance or reinsurance undertakings or the entities referred to in Article 1(1), points (c) and (d), to draw up and submit pre-emptive recovery plans where no group pre-emptive recovery plan exists.
5. Where the supervisory authority concerned assesses that an entity is not sufficiently considered by the group pre-emptive recovery plan in light of the significance of the entity in question in the Member State concerned and in light of the obligations to which comparable undertakings in that Member State are subject, it may request the group supervisor, on the basis of a reasoned opinion, to require the ultimate parent undertaking, or insurance holding company heading the group, to submit a revised group pre-emptive recovery plan taking into account the concerns expressed by the supervisory authority concerned. Where a revised group pre-emptive recovery plan has been submitted and the supervisory authority concerned assesses that that revised plan does not sufficiently address its concerns, it may require the subsidiary insurance or reinsurance undertakings or the entities referred to in Article 1(1), points (c) and (d), concerned, to draw up and submit a pre-emptive recovery plan. In that case, the supervisory authority shall provide the group supervisor with a reasoned opinion for this assessment. Subsequently it shall provide the group supervisor with the pre-emptive recovery plan.
6. The group supervisor shall, provided that the confidentiality requirements laid down in Article 66 are complied with, transmit the group pre-emptive recovery plans to:
(a)
EIOPA;
(b)
the relevant supervisory authorities which are members of or participate in the college of supervisors as referred to in Article 248(3) of Directive 2009/138/EC;
(c)
the group-level resolution authority;
(d)
the resolution authorities of the subsidiary undertakings;
(e)
where the group is or is part of a financial conglomerate, the relevant resolution authority designated in accordance with Article 3 of Directive 2014/59/EU and the competent authority as defined in Article 4(1), point (40), of Regulation (EU) No 575/2013.
7. The administrative, management or supervisory body of the entity drawing up the group pre-emptive recovery plan pursuant to paragraph 1 or the pre-emptive recovery plan pursuant to paragraph 4 or 5 shall assess and approve the plan concerned before submitting it to the group supervisor or to the supervisory authority, as appropriate, for review.
8. When drawing up pre-emptive recovery plans, a Union subsidiary undertaking may take into account any group plans on pre-emptive recovery drawn up by the third-country insurance or reinsurance undertakings or third-country parent undertaking of which it is a subsidiary undertaking, where applicable.
Review and assessment by the group supervisor of group pre-emptive recovery plans
1. The group supervisor shall, after having consulted the relevant supervisory authorities which are members of or participate in the college of supervisors as referred to in Article 248(3) of Directive 2009/138/EC, review the group pre-emptive recovery plan and assess the extent to which it satisfies the requirements and criteria laid down in Article 7. That assessment shall be made in accordance with the procedure established in Article 6 and in this Article and within the period laid down in Article 6(1) and shall take into account the potential impact of the remedial actions on policy holders, the real economy and financial stability in all the Member States where the group operates.
2. The group supervisor shall endeavour to reach a joint decision, as referred to in Article 17 of this Directive, within the college of supervisors established in accordance with Article 248 of Directive 2009/138/EC, on:
(a)
the review and assessment of the group pre-emptive recovery plan;
(b)
whether a pre-emptive recovery plan on an individual basis is to be drawn up for insurance and reinsurance undertakings that are part of the group, in accordance with Article 7(4) or (5) of this Directive;
(c)
the application of the measures referred to in Article 6(4) and (5) of this Directive.
Section 3 — Resolution planning
Resolution plans
1. Member States shall ensure that resolution authorities, after having consulted the supervisory authority, draw up a resolution plan for each insurance or reinsurance undertaking that is not part of a group subject to resolution planning pursuant to Articles 10 and 11, and that meets the conditions laid down in paragraph 2 of this Article. The resolution plan shall provide for the resolution actions which the resolution authority may take where the insurance or reinsurance undertaking meets the conditions for resolution referred to in Article 19(1) or Article 20(3).
2. Resolution authorities shall draw up resolution plans for insurance and reinsurance undertakings for which they assess that it is more likely, when compared to other undertakings under their remit, that resolution action would be in the public interest as referred to in Article 19(5) in the event of the failure of the undertaking concerned, or for which the authorities assess that they perform a critical function. Those assessments shall take into account, as a minimum, the necessity to achieve resolution objectives and the undertaking’s size, business model, risk profile, interconnectedness, substitutability and in particular its cross-border activity.
On the basis of the assessments referred to in the first subparagraph, resolution authorities shall ensure that at least 40 % of the Member State’s life insurance and reinsurance market and 40 % of its non-life insurance and reinsurance market – the life market share being based on gross technical provisions and the non-life market share being based on gross written premiums – are subject to resolution planning. In the calculation of the market coverage level, the subsidiary undertakings of a group may be taken into account where those subsidiary undertakings are covered in the group resolution plan.
Small and non-complex undertakings shall not be subject to resolution planning requirements, except where the resolution authority considers that such an undertaking represents a particular risk at national or regional level.
3. Where the insurance or reinsurance undertaking concerned carries out significant cross-border activities, the home resolution authorities shall provide the draft resolution plan to the host supervisory or resolution authorities. The host supervisory or resolution authorities may examine the draft resolution plan to identify any actions in the draft resolution plan which may adversely impact policy holders, the real economy or the financial stability in their Member State and make recommendations to the home resolution authority with regard to those matters. The home resolution authority shall provide a reasoned reply as to its decision to follow or not the recommendations. Where the home resolution authority fails to properly take into account the recommendations of the host supervisory or resolution authority, the host supervisory or resolution authority may refer the matter to EIOPA in accordance with Article 31(2), point (c), of Regulation (EU) No 1094/2010.
4. When specifying the options for application of resolution tools and powers, resolution plans shall take into consideration relevant resolution scenarios, including the scenario where the failure of the insurance or reinsurance undertaking is idiosyncratic and the scenario where it occurs at a time of broader financial instability or system-wide events.
Resolution plans shall not assume any extraordinary public financial support besides, where available, the use of insurance guarantee schemes or of any financing arrangements.
5. Resolution authorities shall review, and where necessary update, resolution plans at least every two years, and in any case:
(a)
after any material change to the legal or organisational structure of the insurance or reinsurance undertaking, to its business, or to its financial position, that could have a material effect on the effectiveness of the plan or would otherwise necessitate a revision of the resolution plan;
(b)
when a material change to the financial position of the insurance or reinsurance undertaking that could have a material effect on the effectiveness of the plan, or otherwise necessitate a revision of the resolution plan, becomes foreseeable.
Insurance and reinsurance undertakings and supervisory authorities shall promptly communicate to the resolution authorities any event that necessitates a revision or update of the resolution plan.
6. Without prejudice to Article 4, resolution plans shall set out options for applying the resolution tools to, and exercising resolution powers with respect to, the insurance or reinsurance undertaking. Resolution plans shall contain, quantified whenever appropriate and possible, all of the following:
(a)
a summary of the key elements of the plan;
(b)
a summary of the material changes to the undertaking that have occurred since the latest resolution-related information was filed;
(c)
a demonstration of how critical functions and core business lines could be legally and economically separated, to the extent necessary, from other functions so as to ensure continuity upon the failure of the undertaking;
(d)
an identification of those assets which would be expected to qualify as collateral;
(e)
an estimation of the timeframe for executing each material aspect of the plan;
(f)
a detailed description of the assessment of resolvability, including the assessment of feasibility and credibility of winding-up under normal insolvency proceedings, carried out in accordance with Article 13;
(g)
a description of any measures required pursuant to Article 15 to address or remove impediments to resolvability identified as a result of the assessment carried out in accordance with Article 13;
(h)
an explanation as to how the resolution options could be financed without the assumption of any extraordinary public financial support besides, where available, the use of insurance guarantee schemes or of any financing arrangements;
(i)
a detailed description of the different resolution strategies that could be applied in light of the different possible scenarios and the applicable timescales;
(j)
a description of critical interdependencies;
(k)
an analysis of the impact of the resolution plan on the employees of the undertaking, including an assessment of any associated costs, and a description of envisaged procedures to consult staff during the resolution process, taking into account national systems for dialogue with social partners where applicable;
(l)
a plan for communicating with the media and the public;
(m)
a description of essential operations and systems for maintaining the continuous functioning of the undertaking’s operational processes;
(n)
where applicable, any opinion expressed by the undertaking in relation to the resolution plan.
The summary of the key elements of the plan shall be disclosed to the insurance or reinsurance undertaking.
7. The resolution authority shall transmit the resolution plans and any changes thereto to the supervisory authorities concerned.
8. EIOPA shall develop draft regulatory technical standards to specify further the contents of the resolution plan.
EIOPA shall submit those draft regulatory technical standards to the Commission by 29 July 2026.
Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
9. EIOPA shall, by 29 January 2027, issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further the criteria for the identification of critical functions.
Group resolution plans
1. Member States shall ensure that group-level resolution authorities have the power to draw up group resolution plans for groups that are subject to resolution planning on the basis of the conditions laid down in Article 9(2).
2. The group resolution plan shall:
(a)
set out the resolution actions that are to be taken in respect of each entity where measures will be necessary to ensure the continuity of critical functions;
(b)
examine the extent to which the resolution tools could be applied and the resolution powers exercised in a coordinated manner and identify any potential impediments to a coordinated resolution;
(c)
where a group contains entities incorporated in third countries, identify appropriate arrangements for cooperation and coordination with the relevant authorities of those third countries and the implications for resolution within the Union;
(d)
identify measures, including the legal and economic separation of particular functions or business lines, that are necessary to facilitate group resolution, taking into account intra-group interdependencies;
(e)
identify available sources of funding to finance the group resolution actions and, where the use of insurance guarantee schemes or of any financing arrangement would be required, set out principles for sharing responsibility for that financing between sources of funding in different Member States, while not assuming any extraordinary public financial support;
(f)
contain the elements laid down in Article 9(6).
3. The group-level resolution authority shall transmit group resolution plans and any changes thereto to the supervisory authorities concerned and, where the group is, or is part of, a financial conglomerate, to the relevant resolution authority designated in accordance with Article 3 of Directive 2014/59/EU and the competent authority as defined in Article 4(1), point (40), of Regulation (EU) No 575/2013.
4. Resolution authorities may draw up resolution plans for subsidiary insurance or reinsurance undertakings or the entities referred to in Article 1(1), points (c) and (d), where no group resolution plan exists.
5. When drawing up resolution plans, the resolution authorities of Union subsidiary undertakings may take into account the resolution strategy pursued by the third-country authorities concerned for the groups for which those resolution authorities are responsible.
If the resolution authority considers such resolution strategy to be credible and feasible, it may appropriately reflect that resolution strategy and its possible consequences for the Union subsidiary undertaking concerned in its resolution plan. This shall not put at risk the achievement of resolution objectives referred to in Article 18.
6. EIOPA shall develop draft regulatory technical standards specifying the contents of group resolution plans, taking into account the diversity of business models of groups in the internal market.
EIOPA shall submit those draft regulatory technical standards to the Commission by 29 July 2026.
Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
Requirements and procedure for group resolution plans
1. Member States shall ensure that ultimate parent undertakings submit to the group-level resolution authority the information that may be required under Article 12. That information shall concern the ultimate parent undertaking and to the extent required each of the group entities including the entities referred to in Article 1(1), points (b) to (e).
The group-level resolution authority shall, provided that the confidentiality requirements laid down in this Directive are complied with, transmit the relevant information provided in accordance with this paragraph to:
(a)
EIOPA;
(b)
the resolution authorities which are members of the resolution college;
(c)
the relevant supervisory authorities which are members of or participate in the college of supervisors as referred to in Article 248(3) of Directive 2009/138/EC.
2. Member States shall ensure that, in resolution colleges, group-level resolution authorities, acting jointly with the resolution authorities referred to in paragraph 1, second subparagraph, point (b), and after having consulted the supervisory authorities concerned which are members of or participate in the college of supervisors as referred to in Article 248(3) of Directive 2009/138/EC, draw up and maintain group resolution plans. Group-level resolution authorities may, at their discretion, and subject to them meeting the confidentiality requirements laid down in Article 80 of this Directive, involve in the drawing up and maintenance of group resolution plans third-country resolution authorities of jurisdictions in which the group has established subsidiary insurance or reinsurance undertakings or insurance holding companies, or significant branches as defined pursuant to Article 248(8) of Directive 2009/138/EC.
3. Member States shall ensure that group resolution plans are reviewed, and where appropriate updated, at least every two years, and in any case:
(a)
after any change to the legal or organisational structure, to the business, or to the financial position of the group including any group entity, that could have a material effect on or necessitate a change to the plan;
(b)
when a material change to its financial position that could have a material effect on the effectiveness of the plan or otherwise necessitate a revision of the resolution plan, becomes foreseeable.
4. The adoption of the group resolution plan shall take the form of a joint decision, as referred to in Article 17, of the group-level resolution authority and the resolution authorities of the subsidiary insurance and reinsurance undertakings and of the entities referred to in Article 1(1), points (b) to (e).
Information for the purposes of resolution plans and cooperation of the insurance or reinsurance undertaking
1. Member States shall ensure that resolution authorities have the power to require insurance and reinsurance undertakings or the ultimate parent undertaking, as applicable, to:
(a)
cooperate as much as necessary in the drawing up of resolution plans or group resolution plans;
(b)
provide them, either directly or through the supervisory authority, with all of the information necessary to draw up and implement resolution plans or group resolution plans.
2. Supervisory authorities in the Member States concerned shall cooperate with resolution authorities to verify whether some or all of the information referred to in paragraph 1 is already available and shall provide that information to those resolution authorities. Resolution authorities shall obtain all such available information from supervisory authorities before requesting information from insurance and reinsurance undertakings.
3. EIOPA shall develop draft implementing technical standards to specify procedures and a minimum set of standard forms and templates for the provision of information under this Article, and to specify the content of such information.
EIOPA shall submit those draft implementing technical standards to the Commission by 29 July 2026.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.
CHAPTER II — Resolvability
Assessment of resolvability
1. Member States shall ensure that resolution authorities, after having consulted the supervisory authority, assess the extent to which insurance or reinsurance undertakings that are not part of a group are resolvable without the assumption of any extraordinary public financial support besides, where available and applicable, the use of insurance guarantee schemes or of any financing arrangements.
An insurance or reinsurance undertaking shall be deemed resolvable where it is feasible and credible for that undertaking to be wound up under normal insolvency proceedings, or for the resolution authority to resolve that undertaking by applying resolution tools and exercising resolution powers.
2. Where a resolution authority concludes that resolution action may be necessary in the public interest because winding up under normal insolvency proceedings would not meet the resolution objectives to the same extent, it shall proceed to the following consecutive stages:
(a)
select a preferred resolution action appropriate to achieve the resolution objectives given the structure and business model of the insurance or reinsurance undertaking;
(b)
assess whether it is feasible to apply the selected resolution action effectively within an appropriate timeframe and identify potential impediments to its implementation;
(c)
assess the credibility of the selected resolution action, taking into consideration the likely impact of resolution on the financial systems or real economies of the Member States or the Union and the protection of the collective interest of policy holders, beneficiaries and claimants, with a view to ensuring the continuity of critical functions carried out by the insurance or reinsurance undertaking.
3. Resolution authorities shall make the resolvability assessment referred to in paragraph 1 at the same time as, and for the purposes of, the drawing up and updating of the resolution plan in accordance with Article 9. When performing the assessment referred to in paragraph 1, resolution authorities shall, as a minimum, examine the resolvability dimensions specified in the Annex.
4. For the purposes of the assessment of resolvability, resolution authorities may request insurance or reinsurance undertakings to provide all necessary information.
5. EIOPA shall, by 29 January 2027, issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further matters and criteria for the assessment of the resolvability of insurance and reinsurance undertakings or groups provided for in paragraph 1 of this Article and in Article 14 of this Directive.
Assessment of resolvability for groups
1. Member States shall ensure that group-level resolution authorities, together with the resolution authorities of subsidiary undertakings, after having consulted the group supervisor and the supervisory authorities of such subsidiary undertakings, assess the extent to which groups are resolvable without the assumption of any extraordinary public financial support besides, where available and applicable, the use of insurance guarantee schemes or of any financing arrangements.
2. A group shall be deemed resolvable where it is feasible and credible for the resolution authorities either to wind up group entities under normal insolvency proceedings or to resolve that group by applying resolution tools to, and exercising resolution powers with respect to, group entities where they can be easily separated in a timely manner, or by any other means provided for under national law.
The resolution colleges referred to in Article 70 shall take into account the assessment of group resolvability when discharging their functions.
3. Where a resolution authority concludes that resolution action may be necessary in the public interest because winding up under normal insolvency proceedings would not meet the resolution objectives to the same extent, it shall proceed to the following consecutive stages:
(a)
select preferred resolution actions appropriate to achieve the resolution objectives given the structure and business model of the group;
(b)
assess whether it is feasible to apply the selected resolution action effectively within an appropriate timeframe and identify potential impediments to its implementation;
(c)
assess the credibility of the selected resolution action, taking into consideration the likely impact of resolution on the financial systems or real economies of the Member States or the Union and the protection of the collective interest of policy holders, beneficiaries and claimants, with a view to ensuring the continuity of critical functions carried out by the group.
4. Group-level resolution authorities shall make the resolvability assessment of groups at the same time as, and for the purposes of, the drawing up and updating of the group resolution plans in accordance with Article 10. The assessment shall be made under the decision-making procedure laid down in Article 11. When performing the assessment referred to in paragraph 1, group-level resolution authorities shall, as a minimum, examine the resolvability dimensions specified in the Annex.
5. For the purposes of the assessment of resolvability, the group-level resolution authority may request the group entities to provide all necessary information.
Power to address or remove impediments to resolvability
1. Member States shall ensure that, where the assessment carried out in accordance with Article 13 or 14 reveals that there are substantive impediments to the resolvability of an insurance or reinsurance undertaking, the resolution authority notifies that insurance or reinsurance undertaking and the supervisory authority concerned thereof in writing.
2. The requirement for resolution authorities to draw up resolution plans and for the relevant resolution authorities to reach a joint decision in accordance with Article 17 on group resolution plans referred to in Article 9(1) and Article 11(4) respectively shall be suspended following the notification referred to in paragraph 1 of this Article until the measures to remove the substantive impediments to resolvability have been accepted by the resolution authority pursuant to paragraph 3 of this Article or decided upon pursuant to paragraph 4 of this Article.
3. Within four months of the date of receipt of a notification referred to in paragraph 1, the insurance or reinsurance undertaking shall propose to the resolution authority possible measures to address or remove the substantive impediments identified in the notification.
The timeline for the implementation of those measures proposed by the undertaking shall take into account the reasons for the substantive impediments.
The resolution authority, after having consulted the supervisory authority, shall assess whether those measures effectively address or remove the substantive impediments.
4. Resolution authorities that find that the measures proposed by an insurance or reinsurance undertaking in accordance with paragraph 3 do not effectively reduce or remove the impediment concerned, shall, either directly, or indirectly through the supervisory authority, require the insurance or reinsurance undertaking to take any of the alternative measures set out in paragraph 5, and notify such measures in writing to that undertaking, which shall propose a plan to comply with those requirements within one month of receiving such notification.
When identifying alternative measures, resolution authorities shall demonstrate how the measures proposed by the insurance or reinsurance undertaking would not be able to remove the impediments to resolvability and how the alternative measures proposed are proportionate in removing those impediments. Resolution authorities shall take into account the effect of the measures on the business of the insurance or reinsurance undertaking, its stability and its ability to contribute to the economy.
5. For the purposes of paragraph 4, resolution authorities shall have the power to take at least any of the following alternative measures:
(a)
require the insurance or reinsurance undertaking to revise any intra-group financing agreements or review the absence thereof, or draw up service agreements, whether intra-group or with third parties;
(b)
require the insurance or reinsurance undertaking to limit its maximum individual and aggregate exposures;
(c)
impose specific or regular additional information requirements relevant for resolution purposes;
(d)
require the insurance or reinsurance undertaking to divest specific assets or to restructure liabilities;
(e)
require the insurance or reinsurance undertaking to limit or cease specific existing or proposed activities;
(f)
restrict or prevent the development of new or existing business lines or sale of new or existing products;
(g)
require the insurance or reinsurance undertaking to change the reinsurance strategy;
(h)
require changes to legal or operational structures of the insurance or reinsurance undertaking or any group entity, either directly or indirectly under its control, so as to reduce complexity to ensure that critical functions may be legally and operationally separated from other functions through the application of the resolution tools;
(i)
require the insurance or reinsurance undertaking or a parent undertaking to set up a parent insurance holding company in a Member State or a Union parent insurance holding company;
(j)
where the insurance or reinsurance undertaking is the subsidiary undertaking of a mixed-activity insurance holding company, require that the mixed-activity insurance holding company sets up a separate insurance holding company to control the insurance or reinsurance undertaking, where necessary to facilitate the resolution of the insurance or reinsurance undertaking and to avoid that the application of resolution tools and the exercise of resolution powers has an adverse effect on the non-financial part of the group.
6. Before identifying any alternative measure referred to in paragraph 5, the resolution authority, after having consulted the supervisory authority, shall duly consider the potential effect of such measure on the soundness and stability of that particular insurance or reinsurance undertaking’s ongoing business and on the internal market.
7. A notification or decision made pursuant to paragraph 1 or 4 shall:
(a)
contain the reasons for the assessment or determination in question;
(b)
be subject to a right of appeal.
Moreover, a decision made pursuant to paragraph 4 shall indicate how it complies with the requirement for proportionate application laid down in paragraph 4, second subparagraph.
8. EIOPA shall, by 29 July 2027, issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further details on the measures provided for in paragraph 5 of this Article and the circumstances in which each measure may be applied.
Power to address or remove impediments to resolvability: group treatment
1. A group-level resolution authority, together with the resolution authorities of subsidiary undertakings, after having consulted the college of supervisors established in accordance with Article 248 of Directive 2009/138/EC, shall consider the assessment referred to in Article 14 within the resolution college and shall take all reasonable steps to reach a joint decision as referred to in Article 17 on the application of measures identified in accordance with Article 15(4) in relation to all relevant group entities.
2. The group-level resolution authority, in cooperation with the group supervisor and with EIOPA, in accordance with Article 25(1) of Regulation (EU) No 1094/2010, shall prepare a report and submit it to the ultimate parent undertaking and to the resolution authorities of subsidiaries, which shall provide that report to the subsidiary undertakings within their remit. The report shall be prepared after having consulted the supervisory authorities, and shall analyse the substantive impediments to the effective application of resolution tools and the effective exercise of resolution powers in relation to the group. The report shall recommend any proportionate and targeted measures that, in the view of the group-level resolution authority, are necessary or appropriate to remove those impediments, considering the impact of those measures on the group’s business model.
3. Within four months of the date of receipt of the report, the ultimate parent undertaking may submit observations and propose to the group-level resolution authority alternative measures to address or remove the impediments identified in the report.
The group-level resolution authority, after having consulted the group supervisor, shall assess whether those measures effectively address or remove the substantive impediments.
4. The group-level resolution authority shall communicate any measure proposed by the ultimate parent undertaking to the authorities that are members of or participate in the resolution college. The group-level resolution authority and the resolution authorities of the subsidiary undertakings, after having consulted the supervisory authorities, shall do everything within their power to reach a joint decision, as referred to in Article 17, within the resolution college regarding the identification of substantive impediments, and, where necessary, regarding the assessment of the measures proposed by the ultimate parent undertaking and the measures required by the authorities in order to address or remove the impediments. When doing so, they shall take into account the potential impact of the measures in all Member States where the group operates.
CHAPTER III — Joint decisions
Joint decisions
1. Group supervisors, supervisory authorities, group-level resolution authorities and resolution authorities shall endeavour to reach the joint decisions referred to in Article 8(2), Article 11(4) and Article 16(4), as applicable, within four months of the date of:
(a)
the transmission by the group supervisor of the group pre-emptive recovery plan in accordance with Article 7(6);
(b)
the transmission by the group-level resolution authority of the information referred to in the Article 11(1), second subparagraph;
(c)
the submission of any observations or the proposal of any alternative measures by the ultimate parent undertaking, or the expiry of the period referred to in Article 16(3), whichever is earlier.
EIOPA may, at the request of a supervisory authority or a resolution authority, assist the group supervisors, supervisory authorities, group-level resolution authorities and resolution authorities in reaching a joint decision in accordance with Article 31(2), point (c), of Regulation (EU) No 1094/2010.
2. In the absence of a joint decision within the period referred to in paragraph 1, first subparagraph, introductory wording, on any of the following matters, the group supervisor or the group-level resolution authority, as applicable, shall make its own decision thereon:
(a)
the review and assessment of the group pre-emptive recovery plan;
(b)
any measures the ultimate parent undertaking is required to take in accordance with Article 6(4) and (5);
(c)
the group resolution plan;
(d)
the measures referred to in Article 16.
The decision made by the group supervisor or the group-level resolution authority, as applicable, shall be fully reasoned and shall take into account the views and reservations of other supervisory authorities or resolution authorities, as applicable, expressed during the period referred to in paragraph 1, first subparagraph, introductory wording. The decision shall be provided to the ultimate parent undertaking and to the other authorities concerned.
3. In the absence of a joint decision within the period referred to in paragraph 1, first subparagraph, introductory wording, between the supervisory authorities or resolution authorities on any of the following matters, each supervisory authority or resolution authority, as applicable, of a subsidiary undertaking shall make its own decision thereon:
(a)
whether a pre-emptive recovery plan on an individual basis is to be drawn up for the insurance or reinsurance undertakings under its jurisdiction as referred to in Article 8(2);
(b)
the application at subsidiary level of the measures referred to in Article 6(4) and (5);
(c)
the identification of the substantive impediments, and, where necessary, the assessment of the measures proposed by the ultimate parent undertaking and the measures required by the authorities to address or remove those impediments, as referred to in Article 16(1).
4. In the absence of a joint decision between the resolution authorities on the adoption of the group resolution plan, as referred to Article 11(4), within the period referred to in paragraph 1, first subparagraph, introductory wording, of this Article, each resolution authority responsible for a subsidiary undertaking shall make its own decision and shall draw up and keep updated a resolution plan for the entities under its jurisdiction. Each resolution authority shall notify its decision to the other members of the resolution college.
5. Each of the decisions of supervisory or resolution authorities in accordance with paragraph 3 or 4 shall be fully reasoned and shall take into account the views and reservations of the other supervisory authorities, resolution authorities, group supervisors or group-level resolution authorities, as applicable.
6. The supervisory authorities or resolution authorities that do not disagree with a decision as referred to in paragraphs 3 and 4 may reach a joint decision on a group pre-emptive recovery plan or group resolution plan covering group entities under their jurisdictions.
7. Where, by the end of the period referred to in paragraph 1, first subparagraph, introductory wording, any of the supervisory authorities or resolution authorities concerned has referred a matter to EIOPA in accordance with Article 19 of Regulation (EU) No 1094/2010, the group supervisor, the group-level resolution authority, the supervisory authority or the resolution authority concerned, as applicable, shall defer its decision under paragraphs 2, 3 and 4 of this Article, await any decision that EIOPA may take in accordance with Article 19(3) of that Regulation, and take its decision in accordance with the decision of EIOPA. The period referred to in paragraph 1, first subparagraph, introductory wording, of this Article shall be deemed to be the conciliation phase as referred to in Article 19(2) of that Regulation. EIOPA shall take its decision within one month. The matter shall not be referred to EIOPA after the end of the period referred to in paragraph 1, first subparagraph, introductory wording, or after a joint decision has been reached. In the absence of a decision by EIOPA within one month after the referral to EIOPA was made, the decision of the group supervisor, group-level resolution authority, supervisory authority or resolution authority for the group or the subsidiary undertaking at an individual level, as applicable, shall apply.
8. The joint decisions referred to in Article 8(2), Article 11(4), Article 16(4) and paragraph 6 of this Article and the decisions referred to in paragraphs 2, 3 and 4 of this Article shall be recognised as conclusive and shall be applied by the supervisory authorities or resolution authorities in the Member States concerned.
9. Where joint decisions are taken pursuant to Article 11(4) and, in respect of group resolution plans, paragraph 6 of this Article and where a resolution authority assesses that the subject matter of a disagreement regarding group resolution plans impinges on the fiscal responsibilities of its Member State, the group-level resolution authority shall initiate a reassessment of the group resolution plan.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
