The Insurance Bureau of Taiwan has recently released amendments to its outsourcing regulations, specifying that certain insurance projects utilizing cloud services, such as cold storage on the cloud, are exempt from application procedures. This move is part of the broader trend of relaxation of cloud regulations for financial sectors in Taiwan.
Background and Context
The Insurance Bureau’s recent amendments to the Regulations on Matters to Be Noted in the Handling of Insurance Operations by Others come in the wake of significant relaxation of cloud regulations by the Financial Supervisory Commission (FSC) last year. These relaxations aimed to streamline the process for financial institutions, including insurance companies, to adopt cloud services without the need for extensive approval procedures.
Key Changes in the Regulations
The latest amendments include several key changes:
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Exemption from Approval for Certain Cloud Projects: The Insurance Bureau has specified that certain insurance projects utilizing cloud services, such as cold storage on the cloud, are exempt from the need for approval from the FSC. This includes projects like purchasing video conferencing software or services, buying cloud office automation service systems, and storing customer data or backup files in overseas public clouds.
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Clarification of Exempted Items: To address concerns from industry players regarding the ambiguity of which outsourcing projects require approval or exemption, the Insurance Bureau has listed 16 exempted items in its outsourcing FAQs. These include purchasing anti-money laundering data banks and buying cloud office automation service systems.
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Relaxation of Joint Commission Audit: The amendments also relax the scope of joint commission audits, allowing insurance companies to jointly commission third-party audits with banks or securities firms.
Industry Reactions
Industry experts have welcomed the amendments, viewing them as a positive step towards promoting the adoption of cloud services in the insurance industry. The relaxation of regulations is expected to reduce the complexity and costs associated with cloud adoption, thereby encouraging more insurance companies to explore cloud solutions.
Case Study:国泰人壽’s Cloud Adoption
One notable example is the case of Cathay Life Insurance, which successfully migrated 17 systems to the cloud last year, including 16 marketing websites and an airport travel insurance system. The migration of the airport travel insurance system, which operates during peak hours and often conflicts with IT maintenance schedules, was particularly challenging. However, the successful migration demonstrates the potential of cloud services in enhancing operational efficiency and reducing downtime.
Conclusion
The Insurance Bureau’s amendments to the outsourcing regulations mark a significant step towards fostering the adoption of cloud services in the insurance industry. By exempting certain cloud projects from approval procedures and providing clearer guidelines on exempted items, the amendments are expected to facilitate the adoption of cloud technologies and drive innovation in the insurance sector.
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