Outsourcing in insurance

In today's competitive and dynamic (re)insurance industry, outsourcing has become an integral strategy for organisations seeking efficiency, cost-effectiveness, and specialised expertise. This is especially prevalent in the context of any digitisation or transformation project, notably when cloud-based solutions are contemplated.

The circular letters 21/15 and 22/16 of the CAA establish the framework applicable to insurance and reinsurance companies when outsourcing activities and functions to third-party service providers or other entities within the same group. They introduce new requirements, particularly concerning the selection, documentation, and communication to the CAA of Cloud computing solutions (CAA 21/15), business processes and IT outsourcing arrangements (CAA 22/16).

To maintain compliance (including in respect to secrecy matters), insurance and reinsurance companies must review their internal governance processes, allocating sufficient resources to document and oversee their outsourcing relationships with such service providers.

This training session focuses on the requirements introduced by both circular letters, especially in terms of outsourcing assessment, due diligence, risk assessments, insurance secrecy, notifications, oversight of service providers, and exit strategies. Our experts will also share their experience of best-identified market practices and essential steps toward ensuring that outsourced activities comply with the regulatory requirements.

By the end of the training, participants will be able to:

• explain what outsourcing means, and outline the steps the organisation needs to take to comply with regulatory requirements;
• assess whether a service provided by a third party may qualify as outsourcing and identify which circular letter will govern the outsourcing relationship;
• grasp the overall impact of the key requirements on their organisation;
• understand the key documentation requirements and impacts of the outsourcing framework.

• Regulatory landscape
• Outsourcing categorisation and criticality assessment
• Outsourcing lifecycle
• Documenting outsourcing
• Notification to the CAA
• Three lines of defence model
• Main roles as defined in the circular letters

This training is coordinated by Anthony Dault, Marc Voncken, Patrice Witz, Partners, Xavier Lisoir, Managing Director, and Antonin Jakubse, Senior Manager at PwC Luxembourg.

It will be delivered by experts from PwC Luxembourg's insurance sector, who have acquired in their daily work a significant and detailed experience of the issues faced by insurance market players (depending on the needs expressed, PwC Luxembourg may mobilise experts within its network).

Anthony is a partner specialised in insurance/reinsurance and international tax structure, and is actively involved in PwC Luxembourg Reinsurance and Insurance Group (RIG), including the insurance and reinsurance regulatory team.

Anthony has more than 18 years of experience serving several multinationals, subsidiaries of European and US registered companies reporting under IFRS or Lux GAAP in the insurance and reinsurance sector, starting in 2003 in PwC Paris insurance department and in PwC Luxembourg.

In the past years, Anthony has been involved in the development of the PwC Luxembourg insurance regulatory practice, with a strong focus on cross-border distribution as well as regulatory licensing projects. In that context, he co-heads the IDD service offering of PwC Luxembourg, and is a member of the ACA IDD working group.

Marc is specialised in the financial services industry with a focus on insurance and reinsurance.

He has a significant experience in the audit of subsidiaries of international groups reporting under Luxembourg GAAP and IFRS, including captive reinsurances. Additionally to financial audit, Marc has advised several international groups on operational and regulatory topics in relation to the insurance and reinsurance industry.

Patrice is a partner overseeing Technology Consulting within financial services.
With a robust background in IT strategy and transformation, Patrice brings extensive experience across industries, with a focus on the finance sector in Luxembourg, Belgium, and France.

Patrice manages digital, cloud, and EMT activities within the advisory. He has played a key role in major IT strategy and transformation programs for financial institutions. His expertise includes shaping IT strategy, defining operating models, and leading the delivery of significant transformations such as core systems, multi-channel solutions, and digital initiatives. He has led multiple engagements involving the definition of enterprise architecture functions, reviewing specific EA domains including application, integration, infrastructure, and data areas.

Additionally, Patrice has also actively contributed to IT modernisation programmes encompassing infrastructure, cloud, SaaS amongst others.

Xavier has more than 20 years of experience in consulting and is a specialist in document and content management as well as enterprise architecture.

He is also in charge of the coordination within PwC Luxembourg of initiatives related to document and content management (record management, eArchiving with evidential weight, eInvoicing, and dematerialisation) and digital transformation. He is also vice president of the Luxembourg ISO TC46/SC11 committee dealing with records management standards, a member of the local FedISA chapter and an advisor to the Luxembourg government regarding the eArchiving law. Xavier has already contributed repeatedly to the topic, either as an author of articles or as a speaker.

Since joining PwC, Antonin developed an expertise on the General Data Protection Regulation ("GDPR") as well as in project management skills, delivering various types of projects ranging from gap analysis to implementation, ensuring a timely delivery of the project and a high level of engagement of all involved stakeholders. He is the solution driver for the privacy (incl. GDPR) topics, supporting the partner in charge to develop business relationships with existing and new clients.