#2017-1608Establishment of a Resolution Regime for the Insurance Sector
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This law establishes a crisis prevention and resolution framework for the insurance sector. It impacts insurance companies, reinsurers, and related financial entities in France, requiring them to establish preventive recovery plans if they meet certain asset thresholds. The aim is to safeguard financial stability and prevent crisis spillover into the broader economy.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Establishes a crisis management framework for the insurance sector.
- Requires preventive recovery plans for companies over a certain asset threshold.
- Involves the Prudential Supervision and Resolution Authority in crisis resolution processes.
Obligations
What this law requires
Insurance companies, reinsurers, and related financial entities meeting the asset threshold must establish and maintain a preventive recovery plan (plan préventif de rétablissement)
Entities must update their preventive recovery plans on an ongoing basis to maintain compliance
Asset thresholds triggering recovery plan obligations will be established by ministerial decree, taking into account the significant size of affected entities and resolution objectives
The Resolution Director may require any covered insurance sector entity to provide all information necessary for crisis prevention and resolution measures
Guarantee funds for insurance, mutual insurance, and social protection must be consulted by the prudential authority during crisis prevention and resolution procedures affecting their scope of intervention