Resolution planning for insurers

Preparation is very important to deal with a crisis as effectively as possible. DNB determines in advance how it will intervene if an insurer is at risk of failure. This is known as “resolution planning”.



DNB first determines whether an insurer actually qualifies for resolution. This is done by conducting a “public interest test” in which we analyse whether a bankruptcy would have an unduly negative impact on the financial markets, the economy or society. We then assess whether the negative impact could be better prevented through resolution rather than bankruptcy. If this is the case, the insurer qualifies for resolution. DNB then draws up a resolution plan setting out the following matters:

  • Continuity
    Operational and financial continuity is crucial in order to implement the resolution strategy. The resolution plan states, for example, which ICT systems must continue to operate.
  • Obstacles to resolution
    DNB assesses whether the resolution plan is feasible in practice or whether there are obstacles. If there are obstacles, DNB requires the insurer to remove them. Examples of obstacles include complex financial structures between insurance entities or the use of ICT systems within an insurance group. DNB’s approach is based on proportionality.

Resolution planning: not for all insurers

DNB only draws up a resolution plan for insurers that qualify for resolution, so most insurers do not have one.