In a significant point of departure from the EBA Guidelines, EIOPA will not require insurers and reinsurers to maintain a detailed register of all cloud outsourcing arrangements; the record keeping requirement proposed by EIOPA is high level and more flexible because it does not specify the format of the record. Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. This final report sets out the final text of the EIOPA Guidelines on outsourcing to cloud service providers, including the feedback statement to the public consultation, the final impact assessment and the resolution of non-confidential comments provided by the stakeholders during the Consultation on the proposal for Guidelines on outsourcing to cloud service providers. On 24 June 2020, the Luxembourg supervisory authority of the insurance sector, the Commissariat aux Assurances ("CAA"), has issued a Circular Letter 20/13, in which the CAA confirms … Outsourcing of critical or important operational functions or activities shall not be undertaken in such a way as to lead to any of the following: (a) materially impairing the quality of the system of governance of the undertaking concerned; (b) unduly increasing the operational risk; (c) impairing the ability of the supervisory authorities to monitor the compliance of the undertaking with its obligations; (d) undermining continuous and satisfactory service to policy holders. Personalisation cookies collect information about your website browsing habits and offer you a personalised user experience based on past visits, your location or browser settings. “EIOPA consults on guidelines on outsourcing to cloud service providers” (News, 1 luglio 2019) “Consultation paper on the proposal for Guidelines on outsourcing to cloud service providers” (EIOPA-BoS-19/270, 1 July 2019) EIOPA - EUROPEAN INSURANCE AND OCCUPATIONAL PENSIONS AUTHORITY Keeping these cookies enabled helps us improve our website and provide you with the most relevant content. The EIOPA Guidelines shed light on how the outsourcing provisions set forth in the Directive 2009/138/EC (the " Solvency II Directive ") and in the Delegated Regulation (EU) no. Insurance Cloud Outsourcing: EIOPA publishes new guidelines CMS Cameron McKenna Nabarro Olswang LLP European Union, United Kingdom February 24 2020 This website uses cookies so that we can provide you with the best user experience possible. Earlier this year, the European Insurance and Occupational Pensions Authority (EIOPA) published the final version of its guidelines on outsourcing to cloud service providers. Insurance and Pensions Providers are about to face the challenge of having to adhere to the guidelines set by European Insurance and Occupational Pensions Authority. diversity, inclusion and wellbeing report. 1. Technical cookies are required for the site to function properly, to be legally compliant and secure. This page contains news of upcoming webinars and recordings of recent CMS webinars, available to view on demand. The Kalifa Review of UK Fintech (the “Review”) is now published, which: sets out the key threats and opportunities ... We would like to use cookies that will enable us to analyse the use of our websites and to personalise the content for you. In the meantime, insurers and reinsurers will want to familiarise themselves with the content of the Guidelines and the PRA’s consultation paper, Outsourcing and third party risk management (CP30/19), and respond (if necessary) to the CP30/19 by the deadline of 3 April 2020. In its recent consultation paper on Outsourcing (CP30/19), the PRA proposed a requirement for all firms (i.e. These cookies “remember” that you have visited a website and this information may be shared with the providers of analytics services (see details in our privacy policy). If you want to individually select which cookies we can set, please click "Select preferences" below. insurance supervisory authorities (EIOPA-BoS-17/014) (Decision) is a fundamental tool in reinforcing this collab-oration and in building a common European supervisory culture. Title: Insurance Europe response to EIOPA consultation on cloud outsourcing Author: Arthur Hilliard Created Date: 10/3/2019 10:21:13 AM helping keep the financial system stable 2. ensuring markets and financial products are transparent 3. helping protect insurance policyholders, pension scheme members and beneficiaries Competent authorities have until the end of March 2020 to confirm whether they comply, or intend to comply, with the Guidelines. EIOPA has published the final text of its Guidelines on outsourcing to cloud service providers (the “Guidelines”), following last year’s consultation. Our Cookie Notice is part of our Privacy Policy and explains in detail how and why we use cookies. At the heart of insurance and pensions supervision in Europe. EIOPA has published the final text of its Guidelines on outsourcing to cloud service providers (the “Guidelines”), following last year’s consultation. https://www.pwc.ch/en/insights/regulation/EIOPA-guidelines-newsletter.html Article number: 49. You can change these settings at any time via the button "Update Cookie Preferences" in our Cookie Notice. The EIOPA Guidelines shed light on how the outsourcing provisions set forth in the Directive 2009/138/EC (the “Solvency II Directive”) and in the Delegated Regulation (EU) no. At the beginning of 2020, the European Insurance and Occupational Pensions Authority (EIOPA) issued new cloud outsourcing guidelines. Learn more about our mission and tasks. The EIOPA Guidelines shed light on how the outsourcing provisions set forth in the Directive 2009/138/EC (the “Solvency II Directive”) and in the Delegated Regulation (EU) no. Automate against the newest EIOPA Outsourcing Guidelines with BVA. Outsourcing. Insurance and reinsurance undertakings shall, in a timely manner, notify the supervisory authorities prior to the outsourcing of critical or important functions or activities as well as of any subsequent material developments with respect to those functions or activities. New challenge for the insurance industry – increased outsourcing requirements will likely kick in as of July 1st, 2020 On the 1st of July 2019, the European Insurance and Occupational Pensions Authority (EIOPA) issued the consultation paper on the proposal for Guidelines on outsourcing to cloud service providers. We work to enhance supervisory convergence, strengthen consumer protection and preserve financial stability for the benefit of economies, business and EU citizens. On 6 February 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published final Guidelines on outsourcing to cloud service providers for insurance … On 6 February 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published final Guidelines on outsourcing to cloud service providers for … By Fiona M. Maclean, Andrew C. Moyle, and Victoria Sander On 6 February 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published its final guidelines on outsourcing to cloud service providers (CSPs) (the Guidelines). On the 3rd of March 2021, Chancellor Rishi Sunak announced the latest UK budget. The EIOPA guidance will apply to all new cloud outsourcing arrangements entered into or amended on or after 1 January 2021 by insurance and reinsurance providers. Path: TITLE I > CHAPTER IV > SECTION 2. Open insurance – While there is no uniform definition, EIOPA considers open insurance as accessing and sharing insurance-related personal and non-personal data usually via … The Guidelines provide guidance to insurers on how the outsourcing provisions in the Solvency II Directive and Delegated Regulation should be applied in the case of outsourcing to cloud service providers. The European Parliament states that rules should apply to companies operating in EU internal market, including those from outside the EU. We base our requirements and guidance on international best practice, guidelines and recommendations issued by relevant oversight bodies such as the European Insurance & Occupational Pensions Authority (EIOPA), the International Monetary Fund (IMF) and the International Association of Insurance Supervisors (IAIS).. EIOPA Guidelines: 2015/35 (the “Delegated Regulation”) are to be applied in case of outsourcing by insurance and reinsurance undertakings to CSPs. The EIOPA Guidelines shed light on how the outsourcing provisions set forth in the Directive 2009/138/EC (the “Solvency II Directive”) and in the Delegated Regulation (EU) no. Decision (EU) 2021/432 of 1 March 2021 amending Decision (EU) 2017/1198, The European Parliament has adopted a report which calls for the, In this edition, FOS highlights its latest complaints data and its. If you agree to this, please click "Accept all" below. agreements should have clearly defined exit strategy clauses. The Guidelines provide guidance to insurers on how the outsourcing provisions in the Solvency II Directive and Delegated Regulation should be applied in the case of outsourcing to cloud service providers. We do this to optimise the mix of channels to provide you with our content. the requirements in Article 275(5) that the insurance or reinsurance undertaking that is outsourcing critical or important operational functions or activities to: (i) verify that the service provider has the necessary financial resources to perform the additional tasks in a proper and reliable way, and that all staff of the service provider who will be involved in providing the outsourced functions or activities are … Outsourcing, which is defined in Article 15, 54° of the Solvency II Law, is calling on third parties to exercise activities or implement procedures which (i) are specific to the insurance company and (ii) are performed on a recurring or continual basis. The guidelines expand on legislative requirements contained in the EU's so-called 'Solvency II' framework. As the PRA’s rules are not yet final, it will be interesting to see whether the PRA implements this requirement for insurers, or whether it will follow EIOPA’s lead. Eiopa |. On 6 February 2020, the European Insurance and Occupational Pensions Authority ("EIOPA") has published its final guidelines (the "EIOPA Guidelines") on outsourcing to cloud service providers ("CSPs") 1. During this implementation period, the UK will continue to be treated by the EU as a Member State for many purposes and must continue to adhere to its obligations under EU law. 2015/35 (the “Delegated Regulation”) are to be applied in case of outsourcing by insurance and reinsurance undertakings to CSPs. Details concerning the tools in use are in our privacy policy. undertakings outsource critical or important functions or activities. The Guidelines largely follow the EBA Guidelines on outsourcing arrangements (effective since 30 September 2019), but are more streamlined and primarily focus on outsourcing critical or important operational functions. Sign up for newsletters, reports and events, Department of Insurance and Pension Funds, http://www.dgsfp.mineco.es/en/Paginas/Iniciocarrousel.aspx, https://www.bankofengland.co.uk/prudential-regulation, Insurance Groups Supervision Committee (IGSG), https://eiopa.europa.eu/about-eiopa/organisation/working-groups/committees/insurance-group-supervision-committee/index.html, European Insurance and Occupational Pensions Authority (EIOPA), European Insurance & Reinsurance Foundation (CEA), https://www.eesc.europa.eu/en/policies/policy-areas/enterprise/database-self-and-co-regulation-initiatives/49. Following the 2020 Budget, the Chancellor asked Ron Kalifa OBE to carry out an independent review of the UK’s fintech sector to establish priority areas for industry, policy makers, and regulators. They also allow you to log in to personalised areas and to access third party tools that may be embedded in our website. Member States shall ensure that insurance and reinsurance undertakings remain fully responsible for discharging all of their obligations under this Directive when they outsource functions or any insurance or reinsurance activities. Persistent cookies, however, remain and continue functioning on repeat visits. At the beginning of 2020, the European Insurance and Occupational Pensions Authority (EIOPA) issued new cloud outsourcing guidelines. Some functionality will not work if you don’t accept these cookies. 19/270 on Guidelines on outsourcing to cloud service providers” (EIOPA-BoS-20-002, 31 01 2020) 3. Future UK fintech strategy published in Kalifa Review, Insurance Cloud Outsourcing EIOPA publishes new guidelines. EIOPA consultation. Although, we query the practical difference for insurers in keeping a detailed and prescriptive register versus a ‘record’. Against this background, EIOPA has decided to consult on whether its existing guidelines on outsourcing need to be amended or supplemented to reflect properly the challenges faced by insurers availing of the services of cloud service providers (CSPs). The final guidelines create new obligations for insurers that will impact cloud outsourcing arrangements. The EIOPA Guidelines shed light on how the outsourcing provisions set forth in the Directive 2009/138/EC (the “ Solvency II Directive ”) and in the Delegated Regulation (EU) no. This means that by 1 January 2021 insurers will need to have updated their policies and internal processes to reflect the Guidelines and any cloud outsourcing arrangements entered into or amended on or after 1 January 2021 will need to comply with the Guidelines. UK Budget 2021: A bright future for the UK FinTech ecosystem? EIOPA has published the final text of its Guidelines on outsourcing to cloud service providers (the “Guidelines”), following last year’s consultation. On 6 February 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published "Guidelines on outsourcing to cloud service providers (EIOPA-BoS-20-002) " (Guidelines").The Guidelines provide guidance to insurance and reinsurance undertakings (Undertakings) on how the outsourcing provisions included in Solvency II Directive and the Commission Delegated … Session cookies only last for the duration of your visit and are deleted from your device when you close your internet browser. The EIOPA guidance will apply to all new cloud outsourcing arrangements entered into or amended on or after 1 January 2021 by insurance and reinsurance providers. 32 AGEFI Luxembourg Mars 2020 Assurances O n 31 January 2020, the Euro-pean Insurance and Occu-pational Pensions Authority («EIOPA») released gui-delines on outsourcing to cloud Simply search for it! 2015/35 (the " Delegated Regulation ") are to be applied in case of outsourcing by insurance and reinsurance undertakings to … The main question now is to what extent the PRA will reflect the Guidelines in its final policy on outsourcing and third-party risk management. However, it came hot on the heels of the ground-breaking Kalifa Review into the UK’s flourishing FinTech industry. 1. These will result in a new or revised Outsourcing Executive Order for insurance companies and pension funds. The EIOPA Guidelines aim to provide guidance to insurance and reinsurance undertakings as well as to competent national supervisory authorities on how the regulatory framework for outsourcing under the Solvency II regime should apply in the case of outsourcing to cloud service providers. Whilst the UK left the EU on 31 January 2020, as of 1 February 2020 it entered into an “implementation” or “transition” period set to last until 31 December 2020, unless it is extended. To provide regularly updated and easily accessible information by the public the European Insurance and Occupational Pensions Authority (EIOPA) in accordance with Article 8 of EIOPA Regulation (Regulation EU No 1094/2010) publishes the information regarding registered financial … Insurance and reinsurance stakeholder group, Pan-European Personal Pension Product (PEPP), DIRECTIVE 138/2009/EC (SOLVENCY II DIRECTIVE), Westhafenplatz 1, 60327 Frankfurt am Main. On 6 February 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published its final guidelines on outsourcing to cloud service… Insurance outsourcing—product due diligence and renewal; Control over outsourced claims functions; Implications of FCA thematic review ; EIOPA—guidelines on outsourcing to cloud service providers; Lloyd’s approach to insurance outsourcing These will result in a new or revised Outsourcing Executive Order for insurance companies and pension funds. Assuring supply chain compliance for your most critical vendors with Brooklyn Vendor Assurance. 1.2Regulation 51(3) of the European Union (Insurance and Reinsurance) Regulations, 2015 (the “Regulations”) provides that an undertaking must notify the Central Bank (the “Bank”), in a timely manner, before outsourcing critical or