Resolution is a mechanism used to avoid the uncontrolled failure of an insurer and its negative impact on the economy, the financial system, and society. Resolution allows for the recovery of an entity in a poor financial position or its orderly exit from the market. Rescuing an insurer should not involve taxpayers’ money, hence EU Member States set up national authorities, i.e., resolution authorities.


A crisis management framework for insurance and reinsurance entities has been under development in the European Union (EU) since 2021. A regulatory proposal has been put forward by the European Commission

On 20 December 2022, the representatives of the Member States of the Council of the European Union agreed on a negotiating mandate for a proposal for a directive in this area (Insurance Recovery and Resolution Directive, IRRD or IRR Directive) authorising further work on this legislation.

On 26 July 2023, the European Parliament’s version of the directive was published:

In Poland, the mandate to act as a resolution authority for the insurance market was granted  to the Bank Guarantee Fund (BFG) by the Financial Stability Committee at its meeting in December 2021.

IRRD vs. BRRD – specifics of the insurance market