Third-party management in the (re)insurance and banking sectors: an overview of a constantly evolving legal framework

Lydian is proud to have contributed to the European Journal of Compliance and Integrity, published by Anthemis! 

Bastiaan Bruyndonckx and Liese Kuyken, experienced lawyers within our Commercial & Litigation department, are authors of the article "Third-party management in the (re)insurance and banking sectors: an overview of a constantly evolving legal framework".

The article delves into the various forms of outsourcing in the (re)insurance and banking sectors, providing practical tips and guidance to ensure compliance with legal and regulatory requirements at both the Belgian and EU level. We explore the definition and scope of outsourcing, including important and critical functions, sub-outsourcing, and the use of cloud service providers. Additionally, we highlight the EU's Digital Operational Resilience Act (DORA) and its impact on ICT risk management for financial entities.

The article also covers the internal governance framework, responsibilities of the management body, and the necessary documentation, monitoring, and oversight systems. We provide practical recommendations for drafting written agreements and address specific issues such as GDPR compliance, intra-group outsourcing, and outsourcing to third-country service providers.

By understanding and navigating the regulatory landscape, organizations can effectively leverage outsourcing while ensuring compliance and mitigating risks.