Insurer Resolution Framework Executive Summary

This document is an executive summary of the insurer resolution framework, which addresses the management of financial institution failures, specifically insurers, to prevent systemic disruption and protect taxpayers. It outlines international standards developed by the Financial Stability Board (FSB) and the International Association of Insurance Supervisors (IAIS) that govern resolution frameworks. The FSB's Key Attributes consist of 12 essential elements for effective resolution, including objectives, powers, planning, and cross-border coordination. The IAIS Insurance Core Principles provide additional provisions for supervision and resolution measures. The summary details the resolution powers necessary for authorities to manage failing insurers, including control, restructuring, and liquidation powers, emphasizing the need for explicit frameworks and safeguards. It also discusses the importance of resolution planning and cross-border coordination for insurers operating in multiple jurisdictions, highlighting the role of crisis management groups in facilitating cooperation among authorities. Overall, the document presents a structured approach to insurer resolution.