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This practices paper discusses the different sources of resolution funding, including privately funded policyholder protection schemes and standalone resolution funds, and how they interact with each other when both exist. The paper also discusses temporary funding sources for resolution funds and mechanisms in place to recover funds used in resolution.
This paper is relevant for supervisory authorities or resolution authorities of any insurer that could be systemic or critical if it fails. Policy makers and resolution authorities may use the Paper as a reference as they develop their resolution funding framework for insurance companies.