(1) An insurance undertaking or reinsurance undertaking shall be fully responsible for discharging all of its obligations under these Regulations when they outsource functions or any insurance or reinsurance activities.

(2) Where an undertaking outsources critical or important operational functions or activities, it shall not be done in such a way as to lead to any of the following:

(a) materially impairing the quality of the system of governance of the undertaking;

(b) unduly increasing the operational risk;

(c) impairing the ability of the Bank to monitor the compliance of the undertaking with its obligations;

(d) undermining continuous and satisfactory service to policy holders.

(3) An undertaking shall, in a timely manner, notify the Bank -

(a) before outsourcing critical or important functions or activities, and

(b) regarding the occurrence of subsequent material developments with respect to those functions or activities.