In the rapidly evolving landscape of insurance, managing risk isn't just about policies and premiums; it also encompasses the very backbone of operations – technology. More and more insurance providers are depending on specialized software developed by Managing General Agents (MGAs) third-party vendors. While this software can significantly boost efficiency and profitability, it also introduces a new form of risk: What happens if the MGA goes out of business, or is unable to maintain or update the software?
This is where SES, a leading provider of software escrow services, comes into the picture.
Software escrow is a risk mitigation strategy designed to protect businesses reliant on third-party software. In an escrow agreement, the software vendor places the source code, data and access to the software into an escrow account managed by a neutral third party, like SES. The agreement defines specific conditions under which the escrow agent can release the material to the software user.
If the MGA’s Software Vendor, for example, were to go out of business, declare bankruptcy, fail to provide necessary updates, or breach its contract in some other way, the Insurer requires that the MGA have full proven access to the system. If the MGA were to go out of business the Insurer can access the system and can continue operating and maintaining the software and customer base with the support of SES or hire another service provider to do so.
By using SES software escrow services, insurance providers can safeguard against the risk of losing access to crucial operational software, thus ensuring continuity of service to their customers. This is particularly crucial in a heavily regulated industry such as insurance, where any disruption in service or failure to maintain appropriate records could have serious regulatory consequences.
At SES, we understand the complexities of software escrow agreements. Our team of legal and technical experts work closely with clients to design tailored escrow agreements that cover all relevant scenarios and are enforceable under applicable laws.
While access to the source code ensures continuity of services, we understand that the MGA, or Insurer needs the technical ability to manage and maintain the software. Thus, SES not only holds the source code but also provides technical validation and continuity services. This ensures the deposit is complete, accurate, and can be correctly compiled and executed, providing additional assurance to our clients.
In the ever-evolving world of insurance, SES is the worlds leading and trusted partner to navigate software escrow needs. We are committed to providing secure, compliant, and flexible software escrow solutions to ensure that your organisation is safeguarded against unforeseen vendor issues. With SES Secure, rest assured that you have the operational resilience in place, protecting you from the unexpected, and providing complete peace of mind.
For more information, please contact our Software Escrow Insurance specialist Tom Wheeler on +44 161 488 1404 or via email to [email protected]