insurance risk transformation

159the regulated activity specified in article 13A of the Regulated Activities Order (Transformer vehicles: insurance risk transformation) which is, in summary, the activity of an undertaking (‘A’) assuming a risk from an undertaking (‘B’) where:

1. (1) B assumes a risk under a contract of insurance (‘the underlying risk’); and
2. (2) the assumption of risk by A has the legal or economic effect of transferring some or all of the underlying risk to A.