Funding
In the event of resolution, an insurer's deficits are largely for the account of shareholders and creditors. In the event of large deficits, policyholders may also lose some of the value of their insurance policies. Obviously, we will do our best to prevent this from happening. Unlike in the case of banks, there is no guarantee scheme for customers of failing insurers, but a policyholder will never be worse off as a result of resolution than as a result of bankruptcy.
The administrative expenses involved in resolution are paid by the insurance sector as a whole. These may include costs for engaging the services of independent experts. We also pass the costs of resolution planning on to the insurance sector.