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 and 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 that for banks in order to detect and contain a potential financial crisis at an early stage.
The insurance industry 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.
Since 2024, the FSB has instead published a list of insurance companies that must submit resolution plans. 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 push political agendas,” said Kennedy, in a statement. “The Protecting Our Courts from Foreign Manipulation Act ensures these foreign 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 percentage of a settlement or judgment—for the rapid increase in litigation 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 immediately supported by the insurance industry trade association the American 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 president 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.