Zurich Insurance, Swiss Re, and Swiss Life have been added to a list
of insurance firms that must develop resolution plans in case of insolvency, the G20’s financial watchdog said on Tuesday.
The Financial Stability Board published an updated global
list comprising 17 companies, up four from last year. Aside from the three Swiss firms, the FSB added Dutch insurer Athora.
The resolution plans aim to better prepare companies a
nd their regulators for an emergency or collapse.
After the 2007-09 financial crisis, the FSB and policymakers called
for the establishment of a resolution regime for insurers similar to th
at for banks in order to detect and contain a potential financial crisis at an early stage.
The insurance industr
y resisted, arguing the risk of contagion was far lower for it than for banks.
In 2022, the FSB opted to discontinue its annual identification of global systemically important insurers.
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Since 2024, the FSB has instead published a list of insurance companies that must submit resolution pla
ns. Britain has the most insurers on the list with five.
“Right now, hostile foreign nations can pour money into our legal system like it’s a slot machine, hoping
to shake loose our military technology, undercut U.S. companies, or p
ush political agendas,” said Kennedy, in a statement. “The Prote
cting Our Courts from Foreign Manipulation Act ensures these for
eign bad actors cannot sneak through our justice system through the back door.”
The insurance industry has routinely blamed litigation funding—investments in lawsuits in exchange for a p
ercentage of a settlement or judgment—for the rapid increase in litig
ation costs, and subsequently higher insurance costs for consumers.
Kennedy, R-La., introduced the Protecting Our Courts from Foreign Manipulation Act last week, and it was immed
iately supported by the insurance industry trade association the Ameri
can Property Casualty Insurance Association (APCIA).
“Foreign-backed litigation funding is a clear and present risk to our national security and economic stability,” said Sam Whitfield, APCIA’s senior vice presi
dent of federal government relations and political engagement.
The legislation in a companion to House bill (HR 2675), sponsored
by Rep. Ben Cline, R-Va. The bill advanced out of the House Judiciary Committee, also last week.