DORA contains a unified definition for the concept of “critical or important function”. There is an established practice for insurance companies under the Solvency II regime regarding “critical or important functions or activities”. Therefore the question arises whether DORA intended to increase the scope of “critical or important function” for insurance companies or whether the existing understanding can be applied.

The answer to this question is provided by the European Commission.

For the purposes of the application of DORA, the ‘critical or important functions’ for insurance companies should be assessed in accordance with the definition in Article 3(22) DORA. The term “critical or important function” is also defined in other sectoral legislations, e.g. Directive 2014/59/EU (BRRD), and those definitions may differ in scope from the definition in Article 3(22) of DORA.

Disclaimer provided by the European Commission:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.