The Solvency II Directive (Directive 2009/138/EC) was transposed
into domestic Irish law by the European Union (Insurance and
Reinsurance) Regulations 2015, which came into force on 1 January
2016. The Solvency II regime provides clarity as to the functions
an insurer may outsource and the requirements that must be complied
with prior to outsourcing. This is particularly welcome news for
captive insurers who tend to rely heavily on outsource service
providers.
Outsourcing of critical or important functions or
activities
Where a critical or important function or activity is being
outsourced, prior notification must be made to the Central Bank in
a timely manner (at least six weeks before the outsourcing is due
to come into effect). Notification must also be made where there
are subsequent material developments with respect to the outsourced
functions or activities. In determining whether an outsourced
function or activity is critical or important, the
