17-1

When Outsourcing services and processes to service providers Insurance Brokers must contractually ensure that such third parties comply with the requirements of this Regulation.

17-2

Insurance Brokers must remain fully liable for any acts of the service providers.

17-3

Insurance Brokers are responsible for maintaining appropriate training and qualifications of their service providers.

17-4

Outsourcing material business activities is subject to the non-objection of the Central Bank. When requesting the non-objection of the Central Bank for Outsourcing business activities, Insurance Brokers must provide the Central Bank with the following at a minimum:

a.

a brief explanation of the business activity to be Outsourced;

b.

a summary of the materiality assessment;

c.

a summary of the risk assessment;

d.

a summary of the due diligence performed and its outcome;

e.

a confirmation of the agreement of the internal audit function and the compliance function;

f.

an overview of any closely related Outsourcing agreements; and 

g.

evidence of the approval of the proposed Outsourcing by the Insurance Broker’s Representatives. The Central Bank within (20) business days will either grant the non-objection, request further information, or decline the request.

17-5

The Central Bank will assess requests for non-objection on their individual merits on a case-by-case basis, and may or may not permit the Outsourcing of business activities, and key management and Control Functions. Insurance Brokers are encouraged to discuss their material Outsourcing plans early and coordinate with the Central Bank to avoid the non-objection process delaying the Outsourcing.

17-6

An Insurance Broker must not Outsource any activities outside the State.