Insurance guarantee schemes as an element of the crisis management framework in the EU insurance sector – overview of national solutions

This study explores the role of national Insurance Guarantee Schemes (IGSs) in the context of insurance crisis management within the European Union. For that purpose, the review of literature and EU legal framework has been conducted. Also, the comparative analysis of IGSs in the EU Member States (based on national regulations and other sources) and case studies were carried out. The analysis reveals significant variation in the timing and nature of IGSs’ interventions. Noticeable part of EU IGSs (9 IGSs) can also support the insurance portfolio transfer. This seems to be a crucial feature from the perspective of the IGS’s potential to play an active role in the broadly defined crisis management in the insurance sector. IGSs with bigger experience, broader powers and scope of tools can be building blocks for the entire crisis management systems. However, the decision how an IGS should be engaged in the crisis management framework is associated with multiple pros and cons. Also, it should consider various factors like, e.g., the shape of the financial safety net, supervisory and financial obligations of the (re)insurance sector or how IGSs are organized and managed. The study contributes to the limited literature about crisis management in the insurance sector. The article differs from already published works on IGSs which concentrate on operating models as well as pros and cons of IGSs’ existence.