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Directive 2009/138/EC of the European Parliament and of the CouncilDangos y teitl llawn
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (Text with EEA relevance)
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Article 49Outsourcing
1.Member States shall ensure that insurance and reinsurance undertakings remain fully responsible for discharging all of their obligations under this Directive when they outsource functions or any insurance or reinsurance activities.
2.Outsourcing of critical or important operational functions or activities shall not be undertaken in such a way as to lead to any of the following:
(a)materially impairing the quality of the system of governance of the undertaking concerned;
(b)unduly increasing the operational risk;
(c)impairing the ability of the supervisory authorities to monitor the compliance of the undertaking with its obligations;
(d)undermining continuous and satisfactory service to policy holders.
3.Insurance and reinsurance undertakings shall, in a timely manner, notify the supervisory authorities prior to the outsourcing of critical or important functions or activities as well as of any subsequent material developments with respect to those functions or activities.
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