Cloud cover – EIOPA Guidelines on Cloud Outsourcing

New European rules on cloud outsourcing byinsurance undertakings, along with the UK’s imminent final withdrawal from theEU, raise concerns about fragmentation of regulatory standards. Charlotte Hill and Clare Reynolds examine the requirements under the EIOPA CloudGuidelines and the impact they will have on insurance undertakings’ use ofcloud.

Charlotte Hillis a partner and head of the financial services regulatorygroup at Taylor Wessing in London, whereClare Reynoldsis asenior associate. Contact them on c.hill@taylorwessing.com andc.reynolds@taylorwessing.com.

From 1 January 2021, EIOPA’s guidance oncloud outsourcing will impose additional requirements on the use of cloudcomputing by EU insurance undertakings. However, divergent approaches by theFinancial Conduct Authority and Prudential Regulation Authority, as well as theUnited Kingdom’s departure from the European Union, mean that EU insurancecompanies with operations in the UK will face multiple and overlappingstandards.