Insurance Europe has responded to a consultation by the Financial Stability Board (FSB) on effective resolution strategies for Global Systemically Important Insurers (G-SIIs).

The (re) insurance trade federation said it welcomes the FSB’s decision to limit the scope of the "critical functions" definition.

However, the body said the ultimate aim that the "critical functions" concept tries to achieve has still not been unambiguously defined. Therefore, Insurance Europe said a further clarification of this aspect is needed.

The body said there should also be recognition that designation of systemically important insurers and identification of critical functions are very different, and policymakers should not mix up these two approaches.


Insurance Europe also welcomed the degree of flexibility introduced by the FSB to the approach to resolution strategies, including points of entry into resolution.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It said this reflects the wide range of organisational structures in the insurance industry.

Insurance Europe emphasised the importance of applying appropriate resolution tools and strategies, which are adapted to the reality that insurers’ failures occur and can be managed over a long period of time.

In addition, it welcomed the FSB’s preference for portfolio transfers in the proposed guidance.

Along with run-offs, Insurance Europe said portfolio transfers are sufficient to deal with the majority of insurance failures and these should therefore be the most preferred resolution tools.