The Financial Stability Board (FSB) has published two papers designed to assist resolution planning for insurance companies. The papers are practices papers on Resolution Funding for Insurers and Internal Interconnectedness in Resolution Planning for Insurers.
- Resolution Funding for Insurers. This practices paper considers different sources of resolution funding including policyholder protection schemes and standalone resolution funds.
- Internal Interconnectedness in Resolution Planning for Insurers. This practices paper looks at different ways to map operational and financial interconnectedness in insurance companies (i.e. the relationships between individual companies within a group or conglomerate).
The FSB is seeking comments on the practices papers which will help inform further work on insurance company resolution. Comments should be sent to the FSB by 15 March 2022.
The two papers impose no obligations on insurance companies but provide informative discussion about risks that might impact insurance companies and different approaches to managing resolution.