The European Insurance and Occupational Pensions Authority (EIOPA) published today the follow-up report to its 2022 Peer Review on Outsourcing under the Solvency II framework. The report evaluates the extent to which National Competent Authorities (NCAs) across the European Economic Area (EEA) have implemented the 77 recommended actions aimed at enhancing consistency and effectiveness in the supervision of outsourced activities.
Outsourcing remains a widespread and integral component of the insurance and reinsurance sector. It is used extensively by undertakings to support core operations—particularly in response to digitalisation and operational efficiency demands. Its scale and strategic importance underline the need for robust and convergent supervisory oversight.
Results
The follow-up review confirms that NCAs have made substantial progress. 51 recommended actions have been assessed as ‘fulfilled’, 22 as ‘partially fulfilled’, indicating ongoing efforts with significant progress. Four recommended actions have not been fulfilled, meaning that further work on these is required.
This overall progress reflects the supervisory community’s recognition of outsourcing as a key risk area and underlines its collective commitment to aligning with EIOPA’s expectations. Many NCAs have refined regulatory tools, published detailed guidance and improved internal procedures on outsourcing. Structured notification processes, enhanced documentation requirements, and more advanced information systems have contributed to a more data-driven and risk-based approach to supervision.
While the report notes the above improvements, it also identifies areas that warrant further attention, namely off-site supervision, the full operationalisation of supervisory tools, and the consistent embedding of internal procedures.
Given the positive outcome of the peer review, EIOPA recommends that NCAs continue to build on the structures and systems already in place to further improve supervisory practices as the nature of outsourcing demands a dynamic and well-coordinated supervisory response.
Next steps
EIOPA will continue to monitor implementation efforts on outsourcing and may issue targeted guidance or facilitate the exchange of best practices to further strengthen the resilience of the European insurance sector.