https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ARecovery_and_resolution_planning 2026-04-30T13:09:35Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Recovery_and_resolution_planning&diff=11715&oldid=prev 2026-03-12T00:26:48Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🏗️ &#039;&#039;&#039;Recovery and resolution planning&#039;&#039;&#039; refers to the structured process by which [[Definition:Insurance carrier | insurance companies]] — particularly those deemed [[Definition:Systemically important financial institution (SIFI) | systemically important]] — develop detailed strategies to restore financial viability during severe stress (recovery) or to be wound down in an orderly manner if recovery proves impossible (resolution). Born out of the global financial crisis of 2008, this discipline has been adapted from banking regulation into the insurance sector through frameworks promoted by the [[Definition:International Association of Insurance Supervisors (IAIS) | International Association of Insurance Supervisors (IAIS)]] and national [[Definition:Insurance regulator | regulators]] concerned with the broader stability implications of a major insurer&#039;s failure.<br /> <br /> 📋 A recovery plan identifies the triggers — such as breaching [[Definition:Risk-based capital (RBC) | risk-based capital]] thresholds, suffering outsized [[Definition:Catastrophe loss | catastrophe losses]], or experiencing a [[Definition:Liquidity | liquidity]] crisis — that would activate pre-defined management actions. These actions might include raising capital, selling business units, invoking [[Definition:Reinsurance | reinsurance]] recoveries, reducing [[Definition:Underwriting | underwriting]] volumes, or restructuring [[Definition:Investment portfolio | investment portfolios]]. A resolution plan, sometimes called a &quot;living will,&quot; maps out how [[Definition:Insurance regulator | regulators]] would dismantle the organization if it became non-viable, ensuring that [[Definition:Policyholder | policyholder]] obligations are honored, [[Definition:Guaranty fund | guaranty fund]] exposure is minimized, and market disruption is contained. The plans must account for complex group structures, cross-border operations, intercompany [[Definition:Reinsurance | reinsurance]] dependencies, and the operational continuity of critical functions like [[Definition:Claims processing | claims processing]].<br /> <br /> 🔑 For the insurance industry, recovery and resolution planning represents a shift from reactive crisis management to proactive institutional resilience. [[Definition:Insurance regulator | Regulators]] increasingly require major insurers and [[Definition:Reinsurer | reinsurers]] to maintain and periodically test these plans, not simply file them. The discipline also forces companies to confront their own structural complexity — identifying which entities within a group are truly critical and which could be separated or sold without destabilizing the whole. While the heaviest requirements fall on globally active insurers, the principles are filtering down to mid-market carriers through [[Definition:Own risk and solvency assessment (ORSA) | ORSA]] processes and supervisory expectations, making recovery and resolution thinking an increasingly mainstream component of [[Definition:Enterprise risk management (ERM) | enterprise risk management]].<br /> <br /> &#039;&#039;&#039;Related concepts&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Systemically important financial institution (SIFI)]]<br /> * [[Definition:Own risk and solvency assessment (ORSA)]]<br /> * [[Definition:Risk-based capital (RBC)]]<br /> * [[Definition:Enterprise risk management (ERM)]]<br /> * [[Definition:Insolvency]]<br /> * [[Definition:International Association of Insurance Supervisors (IAIS)]]<br /> {{Div col end}}</div>

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