Outsourcing Arrangements including Delegation of Authority provided by Authorised Undertakings

Overview

The Solvency II regime includes strict guidelines on outsourcing arrangements for insurance and reinsurance undertakings operating in the European Union. These rules are designed to ensure that outsourcing does not undermine the insurer's ability to meet regulatory requirements, including risk management, internal control, and compliance with the Solvency II Directive. Chapter 6 of the Insurance Rules issued under the Insurance Business Act (CAP.403). captures the obligation of authorised insurance and reinsurance undertakings, captive insurance and reinsurance undertakings to notify the MFSA of the outsourcing of key and/or critical or important functions or activities as well as of any subsequent material developments with respect to those functions or activities by such authorised undertakings.
The MFSA has now issued a circular to set its expectations clearly and formally with regards to the requirements listed in paragraph 6.8 of Chapter 6: System of Governance of the Insurance Rules in circumstances where authorised undertakings:

1. outsource a key and/or critical/important function to a service provider; and/or
2. enter into an arrangement with a Managing General Agent (“MGA”) and/or an intermediary (“INT”) and/or a Third-Party Administrator (“TPA”) giving them delegated underwriting and/or claims and/or distribution authority

The primary objectives of this event is to:

1. explain the risk-based approach that will be adopted by the MFSA in relation to outsourcing arrangements;
2. explain the scope of the new revised forms and how to be completed;
3. set the Authority's expectations in relation to the entire notification process and post obligations following the no-objection;
4. Share Good and Bad indicators identified by the MFSA; and
5. To respond any queries from the market in relation to this process.

Who Should Attend

• Compliance Officers of Insurance Undertakings

Agenda

Registrations

The Authority encourages interested participants to register by filling in the form below by not later than Tuesday 26 November 2024.

Registration is on a first come, first served basis.

Photos will be taken during the event with the intent to publish such photos on social media channels and websites.

By registering, one would be granting consent to such data being used.