As insurers look to the cloud to support workloads, they should factor in not only cost, but also compliance capabilities that reflect the regulatory environment.
Insurance is an industry based on managing risk by interpreting data – and one that demands constant increases in compute power to meet regulatory and reporting requirements. Now that insurers have started to embrace the cloud, our customers are asking targeted questions, including:
- How do you protect my data?
- How do you use my data?
- How can you help me with my compliance needs?
- Where is my data and who has access to it?
- What do you do in response to government demands for customer data?
This really boils down to one question: ‘Why should I trust you?’
Making the right decision entails answering all of these questions, reviewing the data, analysing your needs and finding the right technology partner to enable success.
Financial regulators want the right to inspect and they want businesses to have greater control over their cloud operation environment. In many countries, regulatory bodies need to be engaged in these discussions. Even where they don’t, it’s better to be proactive and get a ‘no objection’ from the regulator than to have them reviewing and ‘not approving’ your solution.
Cloud service providers need to have a strong security foundation with appropriate practices in place to support their services – and you need the tools to authenticate, access, manage, encrypt, monitor and build on your secure solutions. Once you have all this, it’s easy to bring third parties into your virtual environment in a secure, seamless fashion.
Cloud providers must also adhere to key principles within the ISO 27018 Privacy Standard, including transparency over the handling and location of data, communication with customers and regulators in the event of a breach and giving customers control over how their data is used.
With a secure environment in place we can enable solution providers to build proven, lower-cost solutions that can seamlessly run in – or with – the cloud to bring more value to your business, your users and your bottom line. The support structure and trust required for this can only be achieved by building these industrial-sized solutions together, using the same tools and technologies from concept to delivery and beyond.
Find out more by downloading Microsoft’s Perspectives on Insurance Risk Modelling