The German insurance supervision law (VAG) differentiates between the outsourcing of functions and of other services. The relevant functions are explicitly identified by law. On the other hand the scope of outsourcing other services is not regulated. Properly interpreted, paragraph 64a sec. 4 VAG includes only such services and activities of an undertaking that are insurance-specific.
This interpretation is in line with the requirements of Solvency II – framework Directive. With its implementation the requirement of an insurance-specific activity will be applicable in all member states of the EU. The provisions of the national law have to be adjusted to this regulation. In Germany there should be an explicit legal clarification that prudential requirements only exist for the outsourcing of insurance-specific activities.