Outsourcing in insurance—one minute guide
Produced in partnership with Simon Thomas of Carter Perry Bailey LLP

The following Insurance & Reinsurance practice note produced in partnership with Simon Thomas of Carter Perry Bailey LLP provides comprehensive and up to date legal information covering:

  • Outsourcing in insurance—one minute guide
  • Outsourcing in insurance
  • Why outsource?
  • Impact of Brexit
  • Insurance outsourcing—regulatory structure
  • General regulatory requirements applicable to outsourcing by FSMA regulated firms
  • Specific rules and guidance for insurers
  • Implementing outsourcing policies
  • ‘Critical’ and ‘important’ functions
  • Outsourcing—the practicalities
  • More...

Outsourcing in insurance—one minute guide

This Practice Note provides a high level guide to the key regulatory and practical issues relating to outsourcing in the insurance sector. For more detailed guidance on these issues, see Practice Note: Outsourcing in the insurance sector.

The table of contents on the left-hand side provides a navigation tool for this Practice Note and the related documents pod on the right includes links to a suite of Practice Notes providing comprehensive practical guidance on commercial outsourcing generally.

Outsourcing in insurance

Outsourcing has become increasingly prevalent in the insurance sector in recent years. Whereas traditional models saw insurers entering into binding authority arrangements limited (mainly) to the underwriting of risks and associated claims work, the growth of technology has seen an upsurge in outsourcing to third parties.

With advances in technology, a whole raft of business functions from form processing, claims calls, auditing and data collection through to the hive-out of whole books of business (for example, life books where its long-tail nature can require an insurer to retain records/meet claims for decades after the policy was acquired) are now capable of being outsourced.

While the outsourcing of business functions can (and does) benefit insurers (and reinsurers), there are a multitude of legal and regulatory obligations to be considered when outsourcing functions to third parties. Those commence with pre-agreement considerations and extend to how to achieve

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