Outsourcing

(1) An insurance undertaking that outsources functions or insurance activities remains responsible for complying with all supervisory provisions and requirements.
(2) The outsourcing must not impair the proper performance of the outsourced functions and insurance activities, the management board's ability to manage and control, or the supervisory authority's examination and control rights. In particular, the outsourcing undertaking must ensure, with regard to the functions and insurance activities affected by the outsourcing, that 1. the undertaking itself, its auditors, and the supervisory authority can access all data, 2. the service provider cooperates with the supervisory authority, and 3. the supervisory authority is granted access rights to the service provider's premises, which it may exercise itself or through third parties.
(3) When outsourcing important functions and insurance activities, insurance undertakings must also ensure that material impairments to the quality of the business organisation, an excessive increase in operational risk, and any jeopardy to the continuous and satisfactory service for policyholders are avoided.
(4) The outsourcing insurance undertaking must contractually secure the necessary rights to information and instruction, and must incorporate the outsourced functions and insurance activities into its risk management. A right of instruction is not required where, within the framework of a tax group (Organschaft), functions are outsourced to a parent company and that parent company contractually submits itself, for the performance of the functions or insurance activities, to the same supervisory requirements applicable to the outsourcing undertaking. Where important functions or insurance activities are outsourced to an undertaking with its registered office in a third country, it must be contractually ensured that that undertaking designates a domestic authorised recipient to whom notifications and service by the supervisory authority may be effected.