A draft bill on the recovery and resolution of insurers was published for public consultation on 13 July 2016. Interested parties may respond to the draft bill until 28 August 2016.
The draft bill, which is strongly inspired by the existing framework for the recovery and resolution of banks, expands the tools for the Dutch Central Bank ("DNB") for resolving insurers in trouble in a predictable and orderly manner to protect the interests of policyholders. The draft bill also introduces the possibility to pay advances to policyholders in case of an insurer's bankruptcy before the bankruptcy verification meeting.
In this legal alert we discuss the most important implications of the draft bill for insurers, including the obligation to draw up a pre-crisis plan, the obligation to help DNB in drawing up a resolution plan, and DNB's competence to require insurers to take specific measures to remove obstacles to resolvability
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