The outsourcing of services and processes is a key requirement in all the organised business activity of insurance and reinsurance undertakings. The legal regime arising from Solvency II, through its different layers (Directive, Delegated Regulation, Guidelines on System of Governance) establishes specific rules to prepare outsourcing processes, to select external outsourcing providers, to keep the supervisory authorities duly informed, and to define contracts with the outsourcers to ensure business continuity, quality and service levels for customers. That system brings together interesting particularities as regards the outsourcing of fundamental functions of the system of governance, about when and how to prepare written outsourcing policies, and about how to prepare the contracts in practice, but nevertheless raise doubts in areas like insurance underwriting, where outsourcing rules collide with insurance distribution regulations.
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This article first appeared in Revista de Derecho del Sistema Financiero: mercados, operadores y contratos, ISSN 2695-9534, Nº. 3, 2022.