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.

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, 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 and Marc Voncken, Partners at PwC Luxembourg.

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.

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.