Implementation of resolution instruments applicable to insurance undertakings and resolution strategies

It allows for the resolution college of the Autorité de contrôle prudentiel et de résolution (ACPR) to have at its disposal swift and enhanced instruments and powers with regard to insurers in difficulty so as to prevent the adverse consequences of possible failures in this sector on policyholders, financial stability, the economy or public finances.

The purpose of this note is to provide a first reading of the implementation of the resolution instruments introduced into French law by this Ordinance.

This note presents the specific features of each instrument as well as the operational modalities of their implementation (Part 1) in order to define the most appropriate instruments to be used in relation to a given undertaking and according to the crisis scenario that led to its failure (Part 2).

This initial approach, which may be amended and supplemented in the future based on additional analyses, will be used to draft the first resolution plans of the various undertakings subject to the preventive component of the regime.