French Insurance Code
In forceI.-The preventive recovery plan referred to in article L. 311-5 includes appropriate conditions and procedures to ensure the rapid implementation of the recovery measures identified.
It considers several serious crisis scenarios, of a macroeconomic and financial nature or resulting from catastrophic events, with serious implications for policyholders, beneficiaries and members, depending on the specific situation of the person or group concerned, including events of systemic proportions and crises specific to the person or group concerned.
The plan defines a number of indicators which the person or group can use to decide whether to implement the planned recovery measures.
II.The plans include the following information:
1° A summary of the essential elements of the plan and the expected effects in terms of recovery when one or more of the measures provided for in the plan are implemented by the person or group concerned;
2° A summary presentation of the main changes that have occurred in the legal structure, organisation, activity or financial situation of the person or group concerned since the last recovery plan was submitted;
3° An identification of the critical functions and internal and external interdependencies of the person or group concerned and a study of the separability of the corresponding activities from the rest of its activities;
4° A detailed description of the measures necessary to ensure the operational continuity of the person or group concerned, in particular those relating to access to and availability of IT infrastructures and services, both owned and outsourced, customer communication channels and intermediaries used for contract management;
5° A description of the serious crisis scenarios envisaged and their impact on the net assets and liabilities of the person or group concerned, as well as the impact on the stability of the financial system of the effect of these scenarios on this person or group. The impact analysis also covers the effects on the solvency and liquidity of the person or group concerned and assesses the corresponding contagion risks;
6° A set of indicators for monitoring the financial situation of the person or group concerned, as part of its risk management policy, as well as the thresholds above which the appropriate measures provided for in the recovery plan are examined by the decision-making body with a view to possible implementation;
7° A description of the procedures put in place to approve and implement the plan within appropriate timeframes. This description includes the identification of the persons responsible for its preparation and implementation;
8° A detailed presentation of the actions intended to preserve or restore the viability of the financial situation of the person or group concerned or to reduce its exposure to risks, and their operational implementation. This presentation shall describe the impact of these measures on the solvency and liquidity of the person or group. It specifies the deadlines for their implementation and the time required for them to produce the desired effect, particularly with regard to actions that make it possible to maintain the potential for risk reduction;
9° A communication and information plan to deal with any negative reactions from the public, distributors, policyholders, beneficiaries, members, any risk-takers and any other stakeholders that may be affected if the recovery plan is implemented.
The plan shall describe in detail any obstacles to its effective implementation within an appropriate timeframe. This description includes an analysis of the potential impact of these obstacles on policyholders, beneficiaries and members, co-contractors and, where applicable, other group entities.
