Insurance Ireland – KPMG European Insights Briefing 2021

Date: Wednesday, 20th October 2021

Time: 11.00 am – 12.00 pm

Place: Virtual via Zoom

Overview

In our upcoming briefing, Insurance Ireland and KPMG, together with Marc Peters, Policy Officer, from the European Commission will review the content and implications of the current consultation by the Department of Finance, and from the European Commission, the proposed Directive on Recovery & Resolution of Insurance Undertakings and the proposed revisions to Solvency II.

On 1 September 2021 the Department of Finance published a Public Consultation on the Development of a National Resolution Framework for (re)Insurers. The Department is seeking submissions applicable to the development and scope of a possible domestic resolution framework for insurers. This was followed on 22 September 2021, by the proposal for a new Directive on Recovery & Resolution of insurance undertakings, published by the European Commission. The Consultation Paper and proposed Directive will respectively apply to all insurance and reinsurance undertakings established in Ireland and the EU that are subject to the Solvency II legislative framework. The proposed Directive will also apply to certain material entities within insurance groups. In addition, the Commission has published wide ranging proposed revisions to Solvency II.

While the recent introduction of recovery plan requirements for insurers ensures preparedness in the face of financial stresses, an effective insurance resolution framework could further contribute to achieving policyholder protection, as well as at the macro level maintaining financial stability and minimising the State’s financial exposure. We understand that irrespective of developments at an EU level, the Department of Finance considers the limitations identified in the consultation document with respect to existing national administrative and insolvency processes as matters to be addressed at a national level. The Public Consultation document however notes that it is envisaged that any national resolution framework would align with the core principles of resolution being discussed at EU level.

The proposed Frameworks by the Department of Finance and European Commission contains measures relating to the scope of application of resolution plans for key (re)insurers by resolution authorities, the conditions governing when a resolution authority can put an (re)insurer into resolution and the resolution tools available to resolution authorities, including tools relating to solvent run-off and the wind-down and conversion of capital and debt instruments. Issues relating to additional loss absorption requirements and financing arrangements are also outlined.

Agenda & Speakers

11.00am: Opening remarks, Florian Wimber, Director of Advocacy, Communications and Public Affairs in Insurance Ireland

11.05am: Marc Peters, PhD, Policy Officer, European Commission

11.20am: John O’Donnell, Director – Regulatory, KPMG

11.35am: In Conversation with Florian Wimber, Director of Advocacy, Communications and Public Affairs in Insurance Ireland and Marc Peters, PhD, Policy Officer, from the European Commission

11.55am: John O’Donnell, Director – Regulatory, KPMG

This event is open to Insurance Ireland members only. For further details or to attend please contact events@insuranceireland.eu