The use of cloud computing by (re)insurance undertakings

Cloud computing technology has become increasingly widespread since the late 2000's and the use of cloud computing services has been growing in all sectors of the economy, including the financial sectors.

In the (re)insurance sector, the cloud computing services are most extensively used by newcomers, within a few market niches and by larger undertakings mostly for non-critical functions. Moreover, as part of their wider digital transformation strategies many European (re)insurers are expanding their use of the cloud due to the advantages offered by this technology. For example, moving systems and applications to the cloud is: (i) a way to optimize IT expenses increasing the IT flexibility; and (ii) an enabler for innovation of business models and products.

Although cloud services can offer several advantages, they also raise challenges and risks that shall be managed by the undertakings using such kind of services.

In the European financial regulatory landscape, the purchase of cloud computing services falls within the broader scope of outsourcing.

Already in 2018, the InsurTech TaskForce of the European Insurance and Occupational Pensions Authority (EIOPA) addressed issues related to cloud outsourcing.

Furthermore, within the context of the European Commission FinTech Action Plan (COM (2018) 109 final), in 2018 EIOPA carried out an analysis of the need to develop guidelines on outsourcing to cloud service providers including regulated undertakings. Based on the results of this analysis, EIOPA decided to provide guidance on outsourcing to cloud services. In order to develop an informed decision to be taken by EIOPA's Board of Supervisors EIOPA is seeking views and input from different stakeholders and organising its fourth InsurTech roundtable. The aim of this roundtable is to discuss with the different market participants views and approaches to cloud outsourcing in a Solvency II and post-European Banking Authority Recommendations  environment and to determine best practises.

Guest speakers will deliver presentations followed by an interactive discussion amongst all roundtable participants.

The roundtable held in English is addressed to representatives of National Supervisory Authorities and consumer organization as well as market participants.