https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ARecovery_and_resolution_plan 2026-06-13T17:41:46Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Recovery_and_resolution_plan&diff=9742&oldid=prev 2026-03-11T05:46:03Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🏛️ &#039;&#039;&#039;Recovery and resolution plan&#039;&#039;&#039; is a structured framework that an [[Definition:Insurance carrier | insurance company]] or [[Definition:Insurance group | insurance group]] prepares — often at regulatory direction — to identify credible options for restoring financial viability under severe stress (recovery) and for executing an orderly wind-down if recovery proves impossible (resolution). Sometimes called a &quot;living will,&quot; the concept migrated from banking supervision after the 2008 financial crisis and has been adapted for insurance by the [[Definition:International Association of Insurance Supervisors (IAIS) | IAIS]], the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]], and various national supervisors who oversee [[Definition:Systemically important financial institution (SIFI) | systemically important]] or large complex insurers.<br /> <br /> ⚙️ On the recovery side, the plan catalogues available levers — such as selling [[Definition:Renewal rights | renewal rights]], commuting [[Definition:Reinsurance treaty | reinsurance treaties]], suspending [[Definition:Dividend | dividends]], raising fresh [[Definition:Capital | capital]], or shedding unprofitable [[Definition:Line of business | lines of business]] — and models the financial impact of each under defined stress scenarios. The resolution component maps the legal-entity structure, identifies critical [[Definition:Policyholder | policyholder]] services and [[Definition:Claims management | claims-payment]] functions, and establishes protocols for portfolio transfer, [[Definition:Run-off | run-off]], or [[Definition:Liquidation | liquidation]] while minimizing disruption to policyholders and the broader market. Regulators often require the insurer to demonstrate that key data, [[Definition:Information technology (IT) | IT systems]], and operational capabilities can be separated or maintained independently during a resolution event.<br /> <br /> 🔑 For the insurance industry, these plans serve a dual purpose. They reassure [[Definition:Insurance regulator | supervisors]] and the public that even a large insurer&#039;s failure would not leave policyholders stranded or destabilize [[Definition:Financial market | financial markets]]. Equally important, the planning process itself forces senior management and [[Definition:Board of directors | boards]] to confront tail risks, stress-test [[Definition:Enterprise risk management (ERM) | enterprise risk management]] assumptions, and ensure that [[Definition:Corporate governance | governance]] structures support rapid decision-making in a crisis. As the IAIS continues refining its [[Definition:Insurance capital standard (ICS) | Insurance Capital Standard]] and [[Definition:Common Framework (ComFrame) | ComFrame]] guidance, recovery and resolution planning is becoming an embedded expectation for internationally active insurance groups worldwide.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Run-off]]<br /> * [[Definition:Liquidation]]<br /> * [[Definition:Enterprise risk management (ERM)]]<br /> * [[Definition:Systemically important financial institution (SIFI)]]<br /> * [[Definition:Own risk and solvency assessment (ORSA)]]<br /> * [[Definition:Supervisory college]]<br /> {{Div col end}}</div>

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