Discussion Paper 9 - Use of Services Companies in the Insurance Sector

---

Overview

Description

The Bank has observed a practice within the Insurance Sector whereby a number of insurance and reinsurance undertakings are seeking to enter arrangements for the use of separate legal entities for the provision of extensive staffing to the undertaking. These entities often referred to as service companies or service providers, are usually part of the same group as the undertaking.

The Bank has published this Discussion Paper in order to seek stakeholder’s views on how undertakings who enter such arrangements adequately identify, assess and mitigate against all material risks that they introduce.

The Discussion Paper focuses in particular on issues such as:

•  the appropriateness and adequacy of the initial and ongoing risk identification and management in relation to the arrangement;
• the adequacy of the protections provided for policyholders and other beneficiaries on an ongoing basis and in stress scenarios;
•  the substance in the Irish undertaking

and seeks to explore these issues further by posing questions to interested stakeholders on how the boards and senior management of undertakings do or can satisfy themselves, and appropriately demonstrate that the undertaking complies with relevant requirements, standards and supervisory expectations where arrangements of this kind are in place. Stakeholders are requested to provide responses to the questions posed in the Discussion Paper along with any other general observations on this topic.

Discussion Paper Document

Discussion Paper 9 - Use of Services Companies in the Insurance Sector | pdf 1220 KB

---