Operational Resilience Guidance for Coverholders and Delegated Claims Administrators

This document is a guide focused on Operational Resilience (OR) as mandated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). It outlines the requirements for financial services organizations to maintain robust operations during disruptions, ensuring minimal impact on customers and policyholders. The guide specifies that all UK insurers and their Important Business Services (IBSs) are within the scope of OR. It details the responsibilities of Coverholders (CHs) and Delegated Claims Administrators (DCAs) when they are delegated authority by insurers to deliver services. Key concepts such as Impact Tolerance (ITOL) and Maximum Service Outage (MSO) are defined, emphasizing the need for CHs and DCAs to assess their service delivery and identify vulnerabilities. The document also describes the risk assessment criteria for CHs and DCAs that fall under the operational resilience framework, along with the next steps for compliance, including the completion of an operational resilience questionnaire to identify gaps in their current practices.