Winding-up procedure for insurance companies

The rules on reorganising and winding up insurance companies are set out in title IV of the Solvency 2 directive.

If an insurance company becomes insolvent, the decision to reorganise or wind up the company is made by the relevant authorities in the EU country where the insurance company is registered.

The supervisory authorities must tell their counterparts in all other EU countries about the decision, including any practical implications.

Winding-up proceedings apply to all EU branches of the insurance company.

Creditors must all be informed and treated in the same way, regardless of the EU country they are based in.

Order of priority of insurance claims

The Solvency II directive gives EU countries different options for dealing with insurance claims when winding up an insurer. They can either

  • give insurance claims absolute priority over all other claims on the insurer
  • give insurance claims priority, but allow claims on salaries, social security, taxes and assets to take precedence over insurance claims
  • decide that the costs of winding up the insurer take priority over insurance claims

Forms for publication of reorganisation measures and winding-up decisions

Reorganisation measures and winding-up decisions can be published in the Official Journal of the European Union by filling out and submitting one of the forms below.

The forms can be downloaded and completed in any official language of the EU.

Please return the completed forms to fisma-d4@ec.europa.eu.