From mandatory to optional: Why DORA is a strategic lever for insurers

From mandatory to optional: Why DORA is a strategic lever for insurers

The current series of events - such as the DORA Topic Day at RheinLand Versicherungen in Neuss - impressively demonstrated that DORA is far more than just a traditional compliance topic. The European regulation on digital operational resilience (Digital Operational Resilience Act) not only requires compliance with new regulatory standards - it also offers the opportunity to strategically rethink IT governance and anchor operational resilience in the long term.

If insurers, banks, financial service providers and underwriters not only adapt their processes, documentation and risk management systems with a sense of duty, but also with foresight, the regulatory pressure will turn into a real competitive advantage.

From regulatory pressure to entrepreneurial opportunity

Operational resilience as a success factor

DORA forces companies to systematically record ICT (information and communication technology) risks and manage them appropriately. The aim is not to avoid risk completely - but to be able to maintain business operations even in the event of disruptions.

For insurers, this means that the focus will increasingly be on pragmatic, transparent and resilient processes that are documented in a comprehensible manner at all times. The result is not only regulatory security, but also stronger IT governance as a foundation for business success.

Third-party risk management in focus

DORA highlights one often neglected aspect in particular: the management of risks from third-party relationships - especially for ICT service providers. Dependence on cloud providers, IT outsourcing partners or SaaS services has long been a reality. DORA now requires these relationships to be actively managed, risks to be systematically assessed and integrated into an overarching resilience concept. For insurers, this is an important lever for securing their business model in the long term.

Practical implementation & innovative impulses

Tools and processes as implementation drivers

The theory is clear - but how can it be put into practice? Numerous insurers already rely on technical solutions such as automated vulnerability analyses, continuous monitoring, emergency management systems and information registers. The decisive factor here is not so much the introduction of new tools, but the continuous operation and ongoing adaptation to changing threat situations.

RegTech as an enabler rather than an obstacle

Will DORA become an obstacle to innovation? Or is regulation creating new impetus for the market? The discussions at the DORA Topic Day show a clear trend: the growing RegTech market provides technologies that not only support compliance, but also leverage efficiency potential. Relying on resilient architectures and automated governance processes at an early stage can be a game changer in the digital transformation process.

Three opportunities for insurers

1. Establish structured IT governance

DORA creates the necessary framework to restructure IT processes, sharpen responsibilities and promote a company-wide understanding of resilience - including business continuity management and crisis response plans.

2. Securing competitive advantages through innovation

Building digital resilience not only offers protection against future risks, but also opens doors for new business models. Insurers who invest early in building DORA-compliant structures strengthen their market position in the long term.

3. Promote professional dialog

Events such as the DORA Topic Day show how important interdisciplinary exchange is - between insurers, regulators, technology providers and specialist departments. Sustainable solutions for the entire industry can only be created through cooperation and joint learning.

Conclusion

At first glance, DORA may seem like just another regulatory project. However, for insurers who are prepared to think beyond pure compliance, the regulation offers far-reaching opportunities: to strengthen their own resilience, to increase efficiency in IT governance - and to actively shape the digital future of the industry.

Those who understand DORA correctly will see it not as a constraint, but as a strategic lever.

Your contact persons for insurance

- Antje Pfeifer, E-mail: antje.pfeifer@sopra-ft.com

- Aaron Funccius, E-mail: aaron.funccius@sopra-ft.com