On 5 August 2021 the Central Bank of Ireland (the
"Central Bank") published a consultation
paper seeking views on proposed Guidance on the Use of Service
Companies for Staffing Purposes in the Insurance Sector (the
"Guidance"). Such arrangements include
the use of separate legal entities known as service companies for
the provision of staffing or hybrid arrangements, which involve a
combination of the provision of staff and other outsourced
activities.
The Central Bank is introducing this Guidance as, in its view,
these types of staffing arrangements used by the (re)insurance
industry, have potential, if not effectively managed, to threaten
the operational resilience of (re)insurers.
