This episode of The Standard Formula podcast discusses three emergent insurance resolution regimes that deal with the failure, or potential failure, of insurers. 

Lamya Al-Yazdi, a member of Skadden’s London insurance team, joins Skadden partner Rob Chaplin to discuss the U.K. HM Treasury consultation on the insurer-specific recovery and resolution regime (IRR), the EU Insurance Resolution and Recovery Directive (IRRD) and the proposals outlined in the consultation paper by the Bermuda Monetary Authority.

Starting with the U.K., Rob and Lamya review the four resolution objectives for the IRR. They also discuss the EU’s proposed set of rules for handling insurance company failures. The rules will apply to EU insurance and reinsurance companies covered by Solvency II, EU insurance holding companies and EU mixed financial holding companies.

Finally, they review proposals from the Bermuda Monetary Authority (BMA). The first proposal involves the implementation of recovery planning regulations to aid insurers in proactively addressing adverse scenarios, enabling them to make informed decisions and develop credible survival strategies for severe stress situations. The second proposal suggests that the Bermuda Monetary Authority could mandate insurers to undertake recovery planning measures.

💡 Meet Your Host 💡

Name: Robert Chaplin

Title: Partner, Insurance at Skadden

Specialty: Rob primarily focuses on transactional and advisory work in the insurance sector. He advises on mergers and acquisitions, disposals, joint ventures and strategic reinsurances. He also counsels on regulatory issues, with an emphasis on Solvency II. 

Connect: LinkedIn  

💡 Featured Guest 💡

Name: Lamya Al-Yazdi

What she does: Lamya is a trainee solicitor focused on financial institutions and insurance.

Organization: Skadden

Words of wisdom: “The BMA will use specific criteria as a guide for determining which insurers will require a recovery plan, subject to appropriate proportionality, and risk analysis.” 

Connect: LinkedIn 

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The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.