Group Annual Report 2023

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Outsourcing disclosures

Below the outsourcing disclosures pursuant to Section 156 (1) Z1 in connection with Section 109 VAG are explained in detail:

Holding

VIG Holding decided to have IT services provided by Group-internal and external service providers. In 2023 there was regulatory permission for outsourcing contracts with IBM Austria (Internationale Büromaschinen Gesellschaft m.b.H.), Group-internal IT-Systems provider twinformatics GmbH and VIG IT-Digital Solutions GmbH (hereinafter “VIG IT-DS”), each with registered office in Austria.

VIG IT-DS was founded by VIG Holding in order to an even greater focus on the IT services to be provided Group-wide and to have these provided by a company focused on it. Since 1 January 2023, there are outsourcing contracts concluded with VIT IT-DS and the final responsibility for all VIG Solutions (SAP NewGL, IFRS 9/17, Readsoft and a few smaller supporting applications) were transferred to VIG IT-DS (with twinfomatics as a significant sub-service provider. The twinformatics GmbH continues to assume the overall responsibility for all IT services (except the services transferred to VIG IT-DS) for the Austrian VIG insurance companies and for this concluded any necessary sub-outsourcing in compliance with the statutory and regulatory provisions and in agreement with the VIG insurance companies. The outsourcing contract with IBM Austria ended on 28 February 2023.

In addition, VIG Holding has not outsourced any critical or important functions or operating activities.

Group

Throughout the insurance companies of VIG Group, outsourcing took place in the following areas in particular:

  • IT (in particular operation and maintenance of operating modules, data centre operation, application development services, data storage, support services)
  • Claims handling

The four governance functions were individually outsourced by the operating insurance companies of the VIG Insurance Group, in particular the internal audit and actuarial functions and related activities.

While critical or important functions or activities from the IT area and claims handling were outsourced to primarily to Group external service providers, governance functions were outsourced in the VIG Insurance Group both to Group internal and Group external service providers.

The notification and approval of the outsourcing of critical or important functions or activities, to or by, the local supervisory authorities was done by the relevant companies as needed in compliance with the respective nationally applicable legal provisions.