Insurance Outsourcing: PRA to publish new Supervisory Statement

26 September 2019

In a speech published this week on insurance risk management, the PRA reaffirmed that it is planning to issue a new supervisory statement on outsourcing in October. Charlotte Gerken noted that “The supervisory statement is intended to provide a one-stop source of reference on outsourcing and third-party risk management, bringing together previously issued guidance. It also sets out additional guidance on business continuity and exit strategies.”  

The PRA made this commitment in June of this year to publish a modernised policy framework on outsourcing arrangements for all firms in its response to the van Steenis review on the Future of Finance.Q4 is set to be a very busy time for insurers then in relation to their operational arrangements as we are also awaiting the outcome of the joint regulators’ paper on Operational Resilience later this year.  

This is another example of the UK regulators fast-forwarding the agenda and aligning the regulatory frameworks between banking, insurance, asset management etc. Contrast EIOPA, who is currently consulting on the more specific topic of outsourcing to the cloud and has just recently published its  current thinking on cyber resilience. It will be interesting to see how the PRA and EIOPA positions on outsourcing and operational resilience are aligned.

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Jargon Buster

Agency Database

Future Dates

* Estimated date

  • 31 December 2019

    Following PRA's policy statement (PS10/17) - operational continuity firms are expected to submit the template (PRA109) 45 business days after the first reporting period ending 31 December.

  • *2020

    The date by which all references to CRA ratings in laws and regulations relating to banks are to be removed. This will be done by the Commission based on technical advice from ESMA. EIOPA will be responsible for implementation.

  • 30 January 2020

    Last day for firms to notify the FCA that they wish to enter into the temporary permission regime.