Regulatory Alerts2018-07-12
Guidance Note for Licensed Insurers on Outsourcing
The Commission requires licensed insurers to retain full oversight and accountability for all outsourced material activities and functions, regardless of whether providers are internal or external. Insurers must implement formal outsourcing policies, secure board or senior management approval based on thorough risk and business continuity assessments, and establish written contracts that address provider governance, financial viability, and succession planning. The guidance further mandates periodic reviews of outsourcing arrangements and regular reporting to the board to ensure ongoing compliance and risk mitigation.
Share