PHIAC has issued a second draft of a proposed outsourcing standard for private health insurers.
The Standard will require insurers to:
- implement a Board-endorsed policy that sets out its approach to outsourcing;
- ensure that the Board is able to demonstrate to PHIAC that it has identified and can manage any risk that may materially affect the prudential safety of the insurer, associated with an outsourcing arrangement;
- ensure that their outsourcing arrangements allow PHIAC to access information from the service provider, and for PHIAC to make site visits to the service provider when necessary;
- ensure that they have prior written approval from PHIAC to outsource material business activities to offshore service providers;
- ensure that they notify PHIAC of outsourcing arrangements within 28 days after the execution of related agreements.