Software Escrow within the highly regulated Insurance sector: What are your options?

The European Union’s Digital Operational Resilience Act (DORA) represents a new era of regulatory stipulations for financial services firms. By emphasising digital resilience, DORA introduces standards for ICT risk management, incident reporting, resilience testing, and third-party outsourcing. With DORA set to come into force in early 2025, the 24-month implementation period is crucial. The UK, through the Prudential Regulation Authority Supervisory Statement and the Financial Conduct Authority’s rules, already has stringent standards in place. Rumours suggest a UK equivalent of DORA might soon be introduced.

Implications of the Regulations

These regulations' implications are vast. They demand strict cyber/ICT risk management, in-depth incident reporting, resilience testing, and comprehensive third-party outsourcing management, profoundly affecting the financial industry and ICT Third Party Providers. Insurers, intermediaries, and related entities in both the UK and the EU must act proactively to ensure continued adherence.

Benefits of SES’s Software Escrow Services

SES's services are tailor-made to address the challenges posed by these new regulations. Our software escrow and continuity services allow firms to stay ahead of the regulatory curve. By securely safeguarding and periodically verifying the source code, data, and deployment environments of crucial software, SES guarantees business continuity even if there's a breakdown with a third-party IT service provider. Such a robust system offers a comprehensive solution to the mandates on ICT third-party risk management, resilience testing, and ensures continuous operations.

Embracing the Future

Given the impending enforcement of DORA and the pre-existing standards set by PRA and FCA, firms must act swiftly. SES, with its specialised software escrow and continuity services, stands as a beacon of reliability. With SES, firms don't just achieve compliance but also demonstrate their commitment to robust digital resilience. The future is digital, and SES ensures your firm is ready.

Software Escrow Services

In this evolving regulatory environment, financial services firms have a renewed responsibility, especially concerning third-party IT service providers. SES, with its vast array of software escrow and continuity services, is ready to help firms meet these challenges and attain compliance. We offer a diverse spectrum of Escrow agreements tailored for all – from Insurers, Re-insurers, Software Vendors, to Managing General Agents.

1.    SES Secure – Bronze:

• Legal Software Escrow Agreement: Ensures lawful access to escrowed materials.
• Weekly Deposits: Updated extended Bordereau data stored safely.
• Basic Deposit Testing: Assures accessibility to stored data.
• Escrow Release Notice: 30 days+

2.    SES Secure – Silver:

• Legal Software Escrow Agreement: Legal access to all escrowed content.
• Unlimited Deposits: All relevant data, including source codes, kept up-to-date.
• Validation and Deployment Testing: Complete scrutiny and deployment using stored materials.
• Functional Testing: Independent assessment in SES's infrastructure.
• Independent Deployment: Seamless deployment in SES-hosted environments.
• Escrow Release Notice: 14 Days+.

3.    SES Secure – Gold:

• Legal Software Escrow Agreement: Immediate access to live & replicated application.
• Validation and Deployment Reporting: Detailed reports and recordings.
• Backup and Application Restore: Comprehensive backup and restoration.
• Application Continuity Planning: Ongoing updates and documentation.
• Interim Release: Immediate access during any Escrow Release Notice.

For a comprehensive understanding of our offerings and to discuss tailored solutions for your firm, get in touch with our Insurance and Finance Sector Consultant, Tom Wheeler at [email protected]