Solvency II news: 1 April 2011

Contents: solvency II and cloud computing, solvency II-friendly investment, risk management slide presentation

Cloud computing under Solvency II

Cloud computing will have to comply with Solvency II outsourcing provisions. Lexology reports on the implications of the Directive for the UK insurance industry.

Cloud computing “is a form of outsourcing by which vendors can supply computer services to multiple customers over the Internet,” writes Patrick Devine of Chadbourne & Parke LLP.

“Firms will be required to have written policies relating to outsourcing setting out the goals, reporting procedures and processes to be applied,” he added.

Solvency II Article 49 states that firms remain: “fully responsible for discharging all of their obligations under this Directive when they outsource functions or any insurance or reinsurance activities.”

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