Regulatory Alerts2019-07-22
Added · Updated
Good practice intragroup-relationships in the insurance sector
De Nederlandsche Bank establishes good practices for insurers and insurance groups to manage risks associated with intra-group relationships, including conflicts of interest, contagion, and supervisory arbitrage. Institutions are expected to implement a comprehensive risk management framework that includes a formal policy document, periodic risk assessments, and specific controls for financial exposure, operational implementation, and legal documentation. Key requirements involve ensuring transactions occur at arm's length, limiting financial risks through collateral where necessary, and maintaining clear legal contracts for all intra-group agreements to safeguard solvency and resolvability.
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