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The Application Paper on Recovery Planning provides guidance with respect to supervisory material related to recovery planning in the Insurance Core Principles (ICPs) and the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame). In particular, it is related to the material in ICP 16.15 and ComFrame 16.15.a and 16.15.b (ICP 16 Enterprise Risk Management for Solvency Purposes), and is also relevant to supervisory cooperation and coordination arrangements set out in ICP 23 (The Group-wide Supervisor) and ICP 25 (Supervisory Cooperation and Coordination).

The Application Paper addresses issues that were identified in the development of this material, including feedback received from members and stakeholders during public consultations. The issues involved both the nature of a recovery plan, and the roles of the supervisor and insurer with respect to the plan. Subjects that were identified included:

  • The relationship between recovery plans and enterprise risk management (ERM) tools, including Own Risk and Solvency Assessment (ORSA), contingency plans and other preventive or corrective measures;

  • The circumstances in which it is appropriate for the supervisor to require a recovery plan; and

  • The implementation of the proportionality principle with respect to a recovery plan.