Outsourcing in the insurance sector
Outsourcing in the insurance sector

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Outsourcing in the insurance sector
  • Legal framework—outsourcing in the insurance sector
  • What is ‘outsourcing’ in insurance?
  • Insurance firms remain responsible for outsourced activities
  • What activities can be outsourced in the insurance sector?
  • Threshold conditions
  • PRA fundamental rules and FCA principles for business
  • Specific requirements for outsourcing in the insurance sector
  • Requirement for insurers to have a written policy on outsourcing
  • Contents of the insurance outsourcing policy
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit—Insurance & Reinsurance—overview.

BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance, see Practice Note: Impact of Brexit: Solvency II—quick guide.

This Practice Note examines outsourcing in the insurance sector. The related documents pod on the right includes links to a suite of Practice Notes providing comprehensive practical guidance on commercial outsourcing generally.

Legal framework—outsourcing in the insurance sector

The scope of this Practice Note is limited to outsourcing requirements applicable to firms subject to Solvency II requirements. For non-Solvency II firms, see: Non-Solvency II firms.

Many of the rules concerning outsourcing in the insurance sector derive from Directive 2009/138/EC (Solvency II) and the Regulation (EU) 2015/35 (Commission Delegated Regulation). While Solvency II requires

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