Central Bank of Ireland on Third-Party Arrangement in Insurance Sector
Central Bank of Ireland published a discussion paper on how undertakings that enter third-party arrangements adequately identify, assess, and mitigate against all material risks that they introduce. Central Bank of Ireland has observed a practice in the insurance sector whereby a number of insurance and reinsurance undertakings are seeking to enter arrangements for the use of separate legal entities for the provision of extensive staffing to the undertaking. Stakeholders can respond to this discussion paper by January 31, 2020.
The discussion paper focuses in on issues such as:
- The appropriateness and adequacy of the initial and ongoing risk identification and management in relation to the arrangement
- The adequacy of the protections provided for policyholders and other beneficiaries on an ongoing basis and in stress scenarios
- The substance in the Irish undertaking
The paper seeks to explore these issues further by posing questions to interested stakeholders on how the boards and senior management of undertakings do or can satisfy themselves that these arrangements are appropriate for their undertakings and provide for adequate and effective governance of same. Also, Central Bank of Ireland intends to find out how undertakings ensure adequate identification and management of all material risks, including risks that would arise in stress scenarios.
Related Link: Discussion Paper
Comment Due Date: January 31, 2020
Keywords: Europe, Ireland, Insurance, Reinsurance, Third-Party Arrangements, Governance, Stress Scenarios, Central Bank of Ireland
Related Articles
BCBS Amends Guidelines on Sound Management of AML/CFT Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS Publishes List of Internationally Active Insurance Groups
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC Launches Consultation on Review of Solvency II Directive
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB Consults on Supervisory Approach to Consolidation in Banking
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA Letter Sets Expectations on Approach to Managing Climate Risks
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies Finalize Amendments to Swap Margin Rule
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS on Package for 2020 Data Collection on ICS and Aggregation Method
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
