INSOLVENCY OF INSURANCE ENTERPRISES

Study XC – Legal Guide on the Insolvency of Insurance Enterprises and Harmonisation of National Regimes

Since the global financial crisis, it has become increasingly clear that the failure of insurance enterprises (insurers) can generate systemic implications and negative externalities due to their special characteristics and interconnectedness with the wider financial system. International efforts have therefore focused on developing frameworks for the resolution of insurers whose failure could give rise to systemic risks.

However, less attention has been paid to the design of liquidation frameworks and means to address the failure of non-systemic insurers. As a result, international guidance in this area remains limited, and jurisdictions continue to rely on divergent approaches. This fragmentation hinders cross-border coordination, complicates the application of resolution safeguards such as the “No Creditors Worse Off” principle, and often leaves insurer failures subject to general business insolvency frameworks that are ill-equipped to address the specific features of the insurance sector.

UNIDROIT’s project on the Insolvency of Insurance Enterprises aims at developing guidance for legislators and policymakers on the key features of effective liquidation frameworks for insurers. Conceived as a direct follow-up and complement to the Unidroit Legislative Guide on Bank Liquidation (2025), the project seeks to promote convergence among national regimes by providing international guidance and recommendations tailored to the insurance sector.

In April 2025, UNIDROIT received a proposal from the Italian Institute for the Supervision of Insurance (IVASS) for a project on the insolvency of insurance enterprises and harmonisation of national regimes (see Unidroit 2025 – C.D. (105) 4 rev., Annex II). Highlighting the fragmentation of domestic insolvency laws applicable to insurers and referencing the successful completion of the Unidroit Legislative Guide on Bank Liquidation in 2025, IVASS proposed a follow-up project to address insurer liquidation.

At its 105th session (Rome, 20-23 May 2025), the UNIDROIT Governing Council acknowledged the importance of the topic and recommended the inclusion of the project in the 2026-2028 Work Programme with high priority (Unidroit 2025 – C.D. (105) 32 – Report, para. 90). Following this recommendation, the General Assembly officially adopted the initiative as a high-priority project during its 85th session (Rome, 11 December 2025) (Unidroit 2025 – A.G (85) 3; Unidroit 2025 – A.G (85) 14, para. 81).

Consistent with UNIDROIT’s established working methods, a Working Group has been established, composed of individuals selected for their expertise in the field of insurer insolvency, restructuring, and policyholder protection. Experts participate in a personal capacity and represent different legal systems and geographical regions. The Working Group is comprised of the following expert members and individual observers:

  • Stefania BARIATTI (Chair), Professor, University of Milan (Italy)
  • Oliver BRAND, Professor, University of Manheim (Germany)
  • Yan LI, Vice-President and Professor, Southwest University of Political Science and Law (China)
  • Pierpaolo MARANO, Professor, Catholic University of the Sacred Heart (Italy)
  • Irit MEVORACH, Professor, University of Warwick (Israel/United Kingdom)
  • Kyriaki NOUSSIA, Associate Professor, University of Reading(Greece/United Kingdom)
  • David RAMOS MUÑOZ, Professor, Universidad Carlos III de Madrid (Spain)
  • Janis SARRA, Professor Emeritus, University of British Columbia (Canada)
  • Arthur VAN DEN HURK, Fellow, Institute for Financial Law, Radboud University (Netherlands)
  • Virag BLAZSEK, Associate Professor, Deputy Director, Centre for Business Law and Practice, University of Leeds (Hungary/United Kingdom)
  • Robin BOWLEY, Senior Lecturer, University of Technology Sydney (Australia)
  • Concetta BRESCIA MORRA, Professor, University Roma Tre, President, Insurance Ombudsman AAS (Italy)
  • Georgios PSAROUDAKIS, Professor, Aristotle University of Thessaloniki (Greece)
  • Michele SIRI, Professor, University of Genoa (Italy)

In addition, several international and regional organisations, together with insurance supervisors, resolution authorities, and policyholder protection scheme bodies, have been invited to participate in the Working Group as institutional observers. To date, the following bodies and organisations have joined the Working Group as institutional observers:

  • Asociación de Supervisores de Seguros de América Latina (ASSAL)
  • Association internationale de droit des assurances (AIDA)
  • Bank of Greece
  • Bank Guarantee Fund (Poland)
  • Bundesanstalt für finanzdienstleistungsaufsicht (BaFin) (Germany)
  • Deposit Insurance Corporation of Japan (DICJ)
  • European Bank for Reconstruction and Development (EBRD)
  • European Banking Institute (EBI)
  • European Commission (DG-FISMA)
  • European University Institute (EUI)
  • Insolvency Law Academy (India)
  • Insurance Authority (Hong Kong)
  • International Insolvency Institute (III)
  • Istituto per la vigilanza sulle assicurazioni (IVASS) (Italy)
  • National Bank of Moldova
  • National Insurance Commission (NIC) (Ghana)
  • Perbadanan Insurans Deposit Malaysia (PIDM)
  • Queen Mary University London – Institute of Banking and Finance Law (United Kingdom)
  • Single Resolution Board (SRB)
  • Superintendencia Financiera de Colombia (SFC)
  • Superintendência de Seguros Privados (SUSEP) (Brazil)
  • Swedish National Debt Office (SNDO)
  • United Nations Commission on International Trade Law (UNCITRAL)

 

1st Working Group Meeting

The first session of the Working Group on Insurer Insolvency will take place at the seat of UNIDROIT in Rome and online from 30 November to 2 December 2026. The agenda and meeting documents will follow in due course.