Cloud and the insurance industry

Click here to download the full PDF of Regulating and supervising the clouds: emerging prudential approaches for insurance companies (abstract below)

Use of cloud computing is increasing in the insurance industry, and with it the need for insurance authorities to enhance their regulatory frameworks and supervisory practices to effectively capture the risks. This paper provides an overview of these enhancements as implemented by selected authorities. Most authorities typically apply existing frameworks on outsourcing, governance, risk management, internal control, and information security to insurers’ cloud computing activities, while others have issued cloud-specific recommendations and expectations. Meanwhile, most authorities have put in place formal and informal communication arrangements and are reinforcing their supervisory processes to better monitor and assess the risks of cloud computing.