European Commission 22 September 2021, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework for the recovery and resolution of insurance and reinsurance undertakings and amending Directives 2002/47/EC, 2004/25/EC, 2009/138/EC, (EU) 2017/1132 and Regulations (EU) No 1094/2010 and (EU) No 648/2012

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The proposal for a Directive aims to establish a harmonized framework for the recovery and resolution of insurance and reinsurance undertakings across the EU, addressing the lack of consistent procedures for insurer failures that could lead to significant economic instability. Key provisions include the introduction of resolution tools for authorities to manage failing insurers effectively, ensuring the protection of policyholders while minimizing economic impact. The proposal is designed to align with existing regulations, particularly the Solvency II Directive, and is based on international standards to enhance cross-border cooperation and coordination in crisis situations.AI