The Insurance Recovery and Resolution Directive (Directive (EU) 2025/1 of the European Parliament and of the Council establishing a framework for the recovery and resolution of insurance and reinsurance undertakings) (“IRRD”) introduces a harmonised regime across the European Union (“EU”) for the recovery and resolution of insurance and reinsurance undertakings. The IRRD aims to ensure that failing undertakings can be managed in an orderly manner, safeguarding policyholders, preserving financial stability and minimising reliance on public financial support.

The IRRD sets out key requirements for Member States, including the designation of a resolution authority and the establishment of financing arrangement(s) to ensure the availability of adequate funding means.

The IRRD will be transposed into national law primarily through the enactment of the Insurance Recovery and Resolution Regulations, which will be Subsidiary Legislation under the Malta Financial Services Authority Act (Chapter 330 of the Laws of Malta) and through amendments to the MFSA Act itself. 

Member States are required to transpose the IRRD into national law by 29 January 2027, with the framework becoming operational thereafter.

The objective of this Consultation is to gather feedback from industry on the national transposition of the IRRD. Comments are to be submitted by no later than 31/07/2026. No feedback on the Consultation Document will be considered in favour of the proposals.