HM Treasury recently published a response to its 26 January 2023 consultation on a new Insurer Resolution Regime (the “IRR”) (see our earlier alert here on the original proposals). The response reflects feedback from 13 written industry responses as well as verbal feedback in follow up sessions.

Respondents were broadly supportive of the proposals given that this would mean further alignment with international standards. In respect of such alignment, the UK Government noted its willingness to make targeted deviations to ensure the regime is suitable for the UK insurance sector (noting its intention to leverage the existing activities undertaken by the Prudential Regulation Authority (“PRA”) in respect of pre-resolution planning requirements and its decision not to include a minimum requirement for own funds and eligible liabilities (“MREL”)-type requirement within the regime as examples of such divergence).