Understanding SOC 2 Type II Compliance in the Insurance Industry: Part II

In part one of this article, we discussed how many insurers and wholesale agencies are fortifying their cybersecurity measures by ensuring the third-party vendors/systems they integrate with are SOC 2 Type II compliance certified. 

Here, in part two, we’ll explore the advantages that insurance carriers and wholesalers gain by working with insurtech companies that have taken the extra steps to secure SOC 2 Type II compliance certification to better protect their customers.

Increased Technology Equals Greater Risks 

Technology has become a game-changer for the insurance industry, helping carriers and wholesalers automate and streamline many business processes and workflows. The insurtech companies that make this all happen know that the industry handles vast amounts of sensitive, personally identifiable information (PII) and financial data, making it a prime target for cyberattacks.

What Are the Advantages of SOC 2 Type II Compliance?

Proactive insurtech companies are responding to the increase in cybersecurity threats by investing in more advanced security measures and obtaining SOC 2 Type II compliance certification.

This certification, which is a testament to the highest standards of data security and privacy, is helping carriers and wholesale agencies move forward with insurtech capabilities – without putting customer information at risk. 

An insurtech company that has achieved SOC 2 Type II compliance certification brings several key benefits to insurance carriers and wholesale agencies, including: 

  • Enhanced data security. Companies can feel confident that the robust data security measures required to achieve the certification will safeguard sensitive customer data against a cybersecurity breach and will ensure that this data is protected according to industry best practices. 
  • Stronger business relationships. An insurtech company that is SOC 2 Type II certified demonstrates to insurance carriers and wholesale agencies that the company takes data security seriously. This trust goes a long way in fostering stronger business relationships.  
  • Improved regulatory compliance. When it comes to data security, many industries, including insurance, are subject to strict regulatory requirements. Working with an SOC 2 Type II certified insurtech company helps ensure that carriers and wholesale agencies meet these requirements with security controls that are matched with market best practices. 
  • Greater business continuity assurance. SOC 2 Type II certification requires that companies have comprehensive cybersecurity disaster recovery and business continuity plans in place. This provides reassurance to carriers and wholesale agencies that their operations will not be disrupted should a cybersecurity incident occur. 
  • Advanced cybersecurity risk mitigation. By ensuring that their insurtech partners are SOC 2 Type II certified, carriers and wholesale agencies can better mitigate the risk of potential data breaches as well as the financial and reputational damage that can result from these types of incidents.

The Bottom Line

As the insurance industry continues to shift toward digital channels to better meet the increasing demands of customers, the risk of cyberattacks has heightened further. SOC 2 Type II certification is a key indicator of an insurtech company’s commitment to data security and privacy, providing the companies it serves with extra assurance that the necessary controls and procedures are in place to protect sensitive data – and therefore reduce risk. 

The certification also attests to the suitability of a company’s product offerings and the operating effectiveness of controls when it comes to security, availability and confidentiality.

About Surefyre
Surefyre is a highly configurable insurance automation platform and agency portal focused on digital distribution and automated workflows. Our easy-to-implement process can integrate with almost anything, from outdated legacy systems to top-of-the-line programs. Our codeless integration platform makes your life easier by automating the submission, rating, quoting, and binding process for all P&C insurance products.

To learn more, contact Shawn Gonzales, Adviser & Account Executive, at sgonzales@surefyre.co or 415-480-9283. 

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Shawn Gonzales
Advisor & Account Executive