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Clifford Chance

Clifford Chance


HM Treasury consults on new UK insurer resolution regime

3 February 2023

HM Treasury has published its long-awaited consultation on a proposed insurer resolution regime (IRR). The proposals would give the UK authorities new tools and powers to manage the failure of insurers so as to minimise disruption to policyholders and the wider economy. The consultation is relevant to UK-authorised insurers (including reinsurers) and their holding companies, as well as their counterparties and investors. The consultation closes on 20 April 2023.

Insurers will need to consider the potential impact of the new regime on their business, in particular the possible impact on their debt issuance, financial and supply contracts and insurance and reinsurance terms or pricing and whether they are likely to be within the scope of the proposed additional pre-resolution planning obligations. Insurance groups that are issuers in public markets will also need to consider how to address the proposals in risk factors in their offering documents. Insurers may wish to respond to the consultation proposals to seek to ensure that the IRR is proportionate to the risks presented by the insurance sector.

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