EIOPA had, on April 11, 2019, hosted its Fourth InsurTech Roundtable on the use of cloud computing by insurance undertakings. EIOPA has now published the agenda, summary, and its presentation for the event. The aim of the Roundtable was to discuss, with the different market participants, views and approaches to cloud outsourcing in a Solvency II and post-EBA Recommendations environment and determine best practices for the development of an informed decision on a principle-based guideline.
Over 70 participants from 48 organizations from all over Europe participated in these discussions. The Roundtable continued work of EIOPA that has been outlined in its recently published report titled “Outsourcing to the Cloud: EIOPA's Contribution to the European Commission Fintech Action Plan." The key takeaways of the discussions are as follows:
- In the coming years, cloud computing is expected to become the “new normal” for business and IT development due to its operational advantages.
- To embrace the “cloud” insurance undertakings must weigh opportunities and risks and setup a sound governance system to manage cloud projects and monitor the cloud services on an ongoing basis.
- Negotiating non-standard contractual clauses with cloud service providers is challenging, particularly for smaller undertakings.
- In addition to cloud infrastructure and security investments, the cloud industry is dedicating resources to increase transparency of their services by providing tools and approaches to “auditing” the cloud.
- To succeed with the cloud, it is paramount to keep in mind the shared responsibility model, which requires a cultural shift of the management, the business, the IT risk management, and the control functions
EIOPA will consider the outcome of the Roundtable discussions in its ongoing work on cloud outsourcing, particularly in developing the principle-based guideline, for decision by the EIOPA Board of Supervisors.
- Press Release
- Roundtable Agenda (PDF)
- Roundtable Summary (PDF)
- EIOPA Presentation (PDF)
- EIOPA Report on Cloud Outsourcing (PDF)
Keywords: Europe, EU, Insurance, Insurtech, Regtech, Cloud Outsourcing, Outsourcing, Guidelines, Solvency II, EIOPA
Previous ArticleECB Issues Opinion on Participation in Single Resolution Mechanism
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.