The insurance recovery and resolution directive (IRRD), published in the EU Official Journal on 8 January 2025, establishes a unified framework across the European Union for managing insurer distress and failure. Aimed at protecting policyholders, safeguarding critical insurance services, and minimising taxpayer reliance, IRRD introduces pre-emptive recovery planning, resolvability assessments, and common data standards, aligning insurers with the “living will” approach used in banking. With national transposition required by 29 January 2027, early action by firms will reduce compliance risk, influence supervisory expectations, and integrate resilience into enterprise strategy.

IRRD is a valuable opportunity to showcase resilience, operational discipline, and forward-looking governance. Let EXL help you embed powerful risk management strategies, quickly and confidently.