EIOPA · 2277

Outsourcing

Regulation
(EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article
EIOPA-BoS-20-002 Guidelines on outsourcing to cloud service providers
Topic
Outsourcing
Submitted
2021-04-09
Answered
2022-11-11
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Question

In cases where the undertaking outsources operational activities to service providers which are not cloud service providers but rely significantly on cloud infrastructures to deliver their services (for example, where the cloud service provider is part of a sub-outsourcing chain) , the undertaking has to conclude a written agreement also with the first cloud service provider in the outsourcing chain?

Background

Paragraph 36 of the Guidelines mentiones the respective rights and obligations of the undertaking and of the cloud service provider should be clearly allocated and set out in a written agreement. In the case of service providers which are not cloud service providers but rely significantly on cloud infrastructures it is unclear if the written agreement with this service provider (covering all the aspects of the Guideline, including outsourcing chain) is assimilated to the written agreement with the cloud service provider or it is needed another specific agreement with the cloud service provider.

Answer

The guidelines do not imply an obligation for the undertaking to conclude a written agreement with the cloud service provider in the outsourcing chain, but to ensure that the content of the guidelines are complied with also in case of this type of arrangements. This expectation is to be read in conjunction with “Article 274(4) (k) and (l) of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014”.
View original on European Insurance and Occupational Pensions Authority ↗

This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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