Regulatory Alerts2023-06-14
Added · Updated
Solvency II Governance System Requirements for Insurance Companies
Solvency II imposes effective governance system requirements on all insurance companies, covering internal organization, key functions, risk management, and outsourcing. The rules tighten requirements for the four key functions—compliance, actuarial, risk, and audit—with specific new obligations for the actuarial function regarding technical provisions and the ORSA process. Insurance companies must ensure these functions operate independently with sufficient checks and balances, scaling the structure to the nature, scale, and complexity of the institution. Additionally, firms remain fully responsible for outsourced tasks and must promptly report the outsourcing of critical processes to the supervisor.
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