Defining “critical or important functions or activities” when outsourcing

With the recent increase in regulatory focus on outsourcing, (re)insurers need to ensure that their system of governance, risk management and monitoring of outsourcing arrangements all satisfy the expectations of the regulator. In this briefing note, we explore what a “critical or important function or activity” means for a (re)insurance entity. We focus on the Irish market where the Central Bank of Ireland has given additional guidance on their requirements.