The European Insurance and Occupational Pensions Authority (EIOPA) has published its Report on the Role of Insurance Guarantee Schemes in the Winding-Up Procedures of Insolvent Undertakings in the EU/EEA today.
The aim of the report is to summarize the results of a survey on the role of IGSs in the winding-up procedures of insolvent undertakings across the EU/EEA in which 24 members participated.
Findings from this report highlight the lack of harmonization in areas such as:
- Which authority takes a decision to intervene in case an insurance undertaking becomes insolvent;
- The ability to provide for portfolio transfer;
- A lack of pre-warning systems when an insurance undertaking experiences difficulties;
- The role of the supervisory authority when an insurance undertaking becomes insolvent.
The findings also highlight that policyholders can be at risk of inconsistent treatment across Member States and little or no insurance cover due to the lack of a harmonized approach to IGSs across the EU/EEA.
The text of this report can be viewed on the EIOPA website.
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