On November 13, 2024, IVASS published Consultation Document No. 8/2024, containing a draft Market Letter on outsourcing, aimed at promoting the uniform application of European and national regulations. The document provides non-binding guidance for insurance companies, outlining IVASS’s expectations to ensure responsible and effective management of outsourced activities.
Key points include strengthening the role of the administrative body, involved both in decision-making processes and in the annual review of outsourcing agreement outcomes. Emphasis is placed on assessing risks such as operational, legal, reputational, and IT risks, as well as on adopting contingency plans to ensure operational continuity in case of service disruptions or a decline in service quality.
Other key aspects include identifying critical activities such as claims management and ICT, requiring prior notification of significant changes to outsourcing agreements, monitoring SLAs and KPIs, avoiding complex subcontracting chains, and aligning with the DORA Regulation. Additionally, selecting a new provider will be considered a new outsourcing activity, requiring proper evaluations and communications.
Any comments and proposals can be submitted to IVASS at the email address letteraalmercatoesternalizzazione@ivass.it by December 14, 2024, using the form available for download on the Institute’s website.