On 26 January 2023, the UK Government published its long awaited consultation paper for a new Insurer Resolution Regime ("IRR").

The IRR proposals come a few months after the UK legislative proposals to enhance the insolvency regime for insurers and aim to ensure that the UK remains at the forefront of regulatory developments given the corresponding EU proposals for a recovery and resolution regime for insurers. The IRR is similar to the UK recovery and resolution regime under the Banking Act 2009 but with tailored deviations such as additional resolution tools and the omission of the minimum requirement for own funds and eligible liabilities ("MREL"). Proportionality considerations apply both in respect of applicable resolution strategies and in the application of resolution planning obligations: it is expected that the actual application of the resolution tools and the resolution planning aspects of the regime will apply only to the most significant UK insurers.