23/08/2022
On 19 August 2022, the Commissariat aux Assurances (the “CAA”) published Circular Letter 22/16 (“Circular 22/16”), which clarifies the regulatory requirements that are applicable to the outsourcing of critical or important operational activities and functions (“CI Outsourcing”).
1. Aim
Circular 22/16 specifies the notification requirements applicable to insurance and reinsurance undertakings (“Undertakings”) already provided for under Article 81 of the amended law of 7 December 2015 on the insurance sector.
2. Content
Circular 22/16 is divided into 9 sections:
- Section 1 provides definitions for the concepts of “outsourcing agreement” and “service provider”;
- Section 2 lists the legal bases underlying Circular 22/16;
- Section 3 requires Undertakings to carry out a detailed analysis of each CI Outsourcing before implementing it;
- Section 4 provides guidance on how to evaluate the critical or important nature of a given outsourced activity or function;
- Section 5 requires Undertakings to consider the impact that a planned CI Outsourcing may have from a professional secrecy perspective;
- Section 6 provides further details on the scope of the applicable notification requirements – in particular, certain IT outsourcing arrangements, certain outsourcings to professionals of the insurance sector and certain arrangements with intermediaries are explicitly excluded from the scope of Circular 22/16;
- Section 7 specifies the notification procedure;
- Section 8 provides additional guidance on the forms to be used for the purposes of the required notification;
- Section 9 details the specific documentation duties that are applicable in this context.
3. Entry into force
Circular 22/16 will apply to all outsourcing arrangements that are amended or concluded as of 1 November 2022.
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