On November 10th, the Financial Stability Board (FSB) has released a Practices paper titled “Identification of Critical Functions of Insurers,” available here.
The paper delves into the context set by the ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ (here), highlighting the elements essential for an effective resolution regime. The paper sets out practical experiences and approaches taken by Australia, China, France, and the Netherlands in identifying critical functions. These approaches are showcasing both commonalities and differences in their methodologies, scope, and review processes. Additionally, the paper provides insights into the identified critical functions and the considerations behind their identification, providing illustrative examples from each jurisdiction.
Insurance Europe