On 19August 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").
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.
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 1November 2022.
For any questions please contact our experts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.