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
  • Impact of Brexit
  • Specific requirements for outsourcing in the insurance sector
  • Requirement for insurers to have a written policy on outsourcing
  • More...

Outsourcing in the insurance sector

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 focussed on 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 implementation into national law, the Commission Delegated Regulation is directly effective and did not need separate implementation. This regulation was onshored by the UK when it left the EU, pursuant to the European Union (Withdrawal) Act 2018, and amended by the Solvency 2 and Insurance (Amendment, etc) (EU Exit) Regulations 2019, SI 2019/407 to fix deficiencies in order to ensure that the Solvency II regime continues to operate effectively in the UK following its departure from the EU. See Retained Commission Delegated Regulation (EU) 2015/35.

Equally, while EU instruments lay down baseline rules and requirements, national measures, including Financial Services and Markets Act 2000 (FSMA 2000), the PRA Rulebook and the FCA Handbook, lay down further requirements.

Furthermore, since insurers are dual regulated firms, they will need to comply with both the rules and guidance

Related documents:

Popular documents