Solvency II comes into force on 1 January 2016 after many years of anticipation and postponed implementation dates. Whilst much of the focus is on the capital and solvency requirements that it requires of businesses providing insurance and reinsurance services, it also contains more stringent requirements in relation to an (re)insurer's outsourcing arrangements.
All outsourcing arrangements need to comply with these requirements and so entities that provide insurance / reinsurance services must ensure their arrangements are negotiated to take them into account. Moreover, existing outsourcing contracts need to comply and so there is now a window of time in which to review the terms and put in place any remedial actions before the implementation date of 1 January 2016.
In this note, for ease, when we refer to insurer we refer to any (re)insurer or insurer within the ambit of Solvency II.
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