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What DORA means for you and how DOCOsoft can help

The Digital Operational Resilience Act (DORA) Regulation (EU) 2022/255 is a regulatory framework that aims to strengthen the digital resilience of financial services firms. This includes all insurance companies, including P&C insurers and reinsurers. Carriers increasingly rely on externally sourced technology to manage many of their critical functions, including claims. In so doing they need to be aware that compliance with DORA is essential to ensuring operational stability, data security and regulatory adherence.

Risk management, governance and regulatory compliance have always been important considerations for London Market carriers. But DORA raises the bar by introducing stringent new requirements for cybersecurity, business continuity and third-party risk management. As the leading claims management technology provider in the London Market, DOCOsoft is well-positioned to help carriers navigate the requirements brought in by DORA, while also enhancing operation efficiency.

What is DORA?

DORA establishes a harmonised approach to ICT risk management for financial entities across the EU, with the intention of ensuring that firms can withstand, respond to, and recover from, digital disruptions including cyber attacks and operational failures.

Key aspects of DORA

ICT risk management: Firms must maintain robust governance structures to manage digital risks effectively.

Third-party risk oversight: Carriers need to ensure that outsourced technology providers – including Claims Management System (CMS) providers – comply with the same security and resilience standards they do.

Incident reporting: Cybersecurity breaches or system failures affecting financial services must be reported swiftly to regulatory authorities.

Business continuity and resilience: Financial institutions are required to implement regular testing, risk assessments and contingency planning to ensure operational continuity.

Even though DORA is an EU regulation, it has global implications, particularly for London market carriers who interact with EU-based clients, regulators or service providers. So, compliance is not just a regulatory requirement, but a strategic necessity.

The implications for carriers

DORA’s impact on P&C (re)insurers in the London market is far-reaching, particularly in the following areas:

Third-party risk management

Many carriers rely on claims technology providers to handle claims processing, fraud detection and data analytics. Under DORA, carriers are responsible for ensuring that these third parties adhere to strict security, resilience and regulatory standards. If a service provider fails to meet DORA requirements, the carrier itself could face regulatory scrutiny.

Governance and compliance oversight

Insurers must implement strong governance frameworks to oversee both their internal ICT systems and external vendors. This includes:

  • Tracking compliance measures through audit trails
  • Ensuring cyber resilience across claims systems
  • Maintaining real-time monitoring and incident reporting mechanisms.

Business continuity and incident management

Under DORA, carriers must develop comprehensive business continuity plans (BCPs) and disaster recovery strategies. This includes:

  • Regular testing of claims systems to ensure they remain operational during crises
  • Implementing real-time monitoring to detect and mitigate cyber threats
  • Ensuring claims processing continues seamlessly, even in the event of a major ICT failure or cyberattack.

Cybersecurity and data protection

Protecting customer data is a core pillar of DORA. Carriers must work with claims technology providers that enforce:

  • Encryption, data anonymisation and access controls
  • Regular penetration testing to identify and address any vulnerabilities
  • ISO 27001-compliant security standards.

Failing to meet these cybersecurity requirements could lead to regulatory fines, reputational damage and loss of customer trust.

How claims technology providers can support carriers

Claims management software providers play a critical role in helping insurers meet DORA’s stringent requirements. Key areas of support include:

1. Harnessing advanced technology to ensure regulatory compliance

    Modern claims management systems help carriers stay aligned with DORA’s compliance requirements by:

    • Automating compliance reporting for regulatory oversight
    • Embedding AI-driven monitoring tools to detect cyber threats in real time
    • Ensuring full audit trails for claims processing and system activity.

    2. Strengthening business continuity and disaster recovery

    A DORA-compliant CMS needs to include robust business continuity capabilities, including:

    • Multi-region cloud storage for data redundancy
    • Automated failover mechanisms to ensure uninterrupted claims processing
    • Integration with insurers’ BCPs, ensuring seamless transitions in the event of disruptions.

    3. Enhancing cybersecurity measures

    Claims technology providers need to:

    • Conduct regular penetration testing to identify vulnerabilities
    • Ensure all claims data is encrypted and protected from cyber threats
    • Implement secure access controls to prevent unauthorised access.

    How DOCOsoft supports its clients with DORA Compliance

    As a trusted provider of claims management software to the London market, DOCOsoft offers industry-leading solutions that align with DORA’s core principles of resilience, security and compliance.

    1. Regulatory compliance

    DOCOsoft’s claims systems include regulatory compliance tools that help insurers meet DORA’s requirements.

    This includes:

    • ISO 27001 and ISO 22301 certifications for cybersecurity and business continuity
    • Compliance reporting tools to ensure insurers meet regulatory obligations
    • Real-time risk monitoring to detect and prevent cyber threats.

    2. Business continuity and disaster recovery planning

    DOCOsoft’s systems support insurers by:

    • Maintaining an ISO 22301-certified business continuity plan
    • Conducting annual scenario testing to ensure system resilience
    • Providing failover support to keep claims processing uninterrupted during crises

    3. Incident management and cybersecurity

    DOCOsoft enables carriers to meet DORA’s incident management standards by:

    • Detecting potential incidents and vulnerabilities early
    • Conducting regular threat-led penetration testing (TLPT)
    • Offering end-to-end encryption for data protection.

    4. Third-party risk management and audits

    DOCOsoft supports insurers in managing third-party risks by:

    • Providing full visibility over claims processing vendors
    • Offering audit-ready compliance documentation
    • Ensuring all subcontractors adhere to DORA’s resilience standards.

    Conclusion

    DORA represents a major shift in how carriers need to approach digital resilience, operational continuity and risk management. By ensuring robust cybersecurity, compliance reporting and disaster recovery measures, carriers can both protect their claims operations and maintain regulatory compliance.

    As the leading claims management software provider to the London Market, all of us here at DOCOsoft are aware of the issues raised by DORA and fully committed to helping our customers navigate the post-DORA landscape. Delivering secure, compliant and resilient claims technology solutions has always been our aim and is now so more than ever.

    DOCOsoft’s ability to deliver ISO-certified security, advanced risk monitoring and built-in regulatory reporting tools, reinforces our credentials as a trusted and trustworthy partner for carriers looking to future-proof their claims systems against emerging digital risks.

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