🛡️ DORA for Insurance Sector

Comprehensive implementation guide for insurance companies to achieve digital operational resilience and protect policyholder data

5 Key Pillars
Jan 2025 In Effect
€10M+ Max Penalties

Why DORA Matters for Insurance Companies

Insurance companies handle vast amounts of sensitive policyholder data and rely on complex ICT systems for underwriting, claims processing, and customer services. This digital dependency creates exposure to cyber threats, system failures, and operational disruptions.

DORA establishes a harmonized regulatory framework ensuring insurers maintain robust operational resilience, protect policyholder information, and guarantee service continuity even during major ICT incidents.

Key Benefits

  • Enhanced policyholder data protection
  • Improved claims processing resilience
  • Standardized third-party oversight
  • Regulatory compliance and reputation protection

Insurance-Specific DORA Considerations

Critical Insurance Systems Requiring Protection

  • Policy Administration Systems: Core systems managing policy lifecycle, renewals, and modifications
  • Claims Management Platforms: Systems processing claims submissions, assessments, and payouts
  • Underwriting Engines: Risk assessment and pricing algorithms requiring high availability
  • Customer Portals: Digital channels for policy management and customer self-service
  • Actuarial Systems: Critical calculation engines for reserves, pricing, and risk modeling
  • Reinsurance Platforms: Systems managing reinsurance arrangements and ceded claims

Insurance companies must ensure DORA compliance frameworks address these sector-specific systems while maintaining focus on operational resilience, data protection, and service continuity.

Key DORA Requirements for Insurers

ICT Risk Management

Establish comprehensive ICT risk framework integrated with Solvency II requirements, covering risk identification, assessment, mitigation, and continuous monitoring of insurance systems.

Incident Reporting

Implement incident detection and classification systems with mandatory reporting to EIOPA and national supervisors for major ICT incidents affecting insurance operations.

Resilience Testing

Conduct regular testing of critical insurance systems including vulnerability assessments, penetration testing, and TLPT for high-impact insurers.

Third-Party Management

Manage ICT service providers through enhanced due diligence, focusing on claims processors, policy administration vendors, and cloud service providers.

Information Sharing

Participate in insurance sector threat intelligence sharing to enhance collective defense against cyber threats targeting the industry.

Required Deliverables for Insurance Companies

ICT Risk Management Framework

Insurance-tailored framework documenting ICT risk processes, governance structures, integration with Solvency II risk management, and specific controls for policyholder data protection.

Incident Response Protocol

Formal procedures for incident detection, classification (including claims system impacts), escalation, and reporting to EIOPA with defined timelines and communication plans.

Resilience Testing Reports

Documented results from testing of policy administration, claims processing, and underwriting systems with vulnerability remediation plans and validation evidence.

Third-Party Risk Policy

Comprehensive policy for managing insurance-specific ICT providers including claims administrators, policy system vendors, and actuarial calculation services.

Business Continuity Plan

Detailed plans ensuring critical insurance operations (claims processing, policy issuance, customer service) continue during ICT disruptions with defined RTOs for priority services.

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Insurance-Specific Implementation Roadmap

1

System Inventory

Map all critical insurance ICT systems including policy administration, claims, underwriting, and customer portals to assess DORA scope.

2

Gap Assessment

Evaluate current ICT risk practices against DORA requirements, identifying gaps in incident response, testing, and third-party oversight.

3

Governance Structure

Establish DORA compliance team with representatives from IT, underwriting, claims, compliance, and actuarial functions.

4

Framework Development

Develop insurance-tailored ICT risk framework integrated with Solvency II requirements and existing risk management systems.

5

Vendor Review

Review contracts with policy system vendors, claims processors, and cloud providers to ensure DORA compliance and establish oversight.

6

Testing & Validation

Conduct resilience testing of critical insurance systems, validate incident procedures, and document results for regulatory reporting.

Conclusion

DORA compliance represents a strategic opportunity for insurance companies to strengthen operational resilience while protecting policyholder data and maintaining service continuity. By implementing robust ICT risk frameworks tailored to insurance operations, insurers demonstrate commitment to operational excellence and customer protection.

The insurance sector faces unique challenges with complex legacy systems, extensive third-party dependencies, and critical customer-facing services. DORA provides a structured approach to address these challenges systematically, transforming compliance into competitive advantage through enhanced resilience, customer trust, and regulatory alignment.