Critical functions in insurance undertakings – evaluation of selected insurance products and product groups*

The IRR directive requires the identification of critical functions in insurance undertakings. This article aims to provide a preliminary evaluation of five insurance products and groups of products in terms of their potential to be classified as critical functions. To achieve this, the definition of critical functions, as well as the available recommendations and methodologies in this area, were analysed. Based on this analysis, five groups of insurance products and services were selected and assessed in terms of the possibility of meeting the definition of critical functions. The premises for the evaluation of these product groups as critical functions were examined as well. The analysis does not exhaust all areas of insurers’ activities in the context of identifying critical functions and further research directions may include, for example, investment activities in securities markets or transactions in the derivatives market. Keywords