InsurTech • SOC 2 • Policyholder Data
InsurTech Cybersecurity Challenges
Protecting Policyholder Data and Meeting Compliance with SOC 2
Insurance runs on trust. SOC 2 helps you prove it.
Insurance runs on trust.
Trust that personal data is protected.
Trust that claims information stays confidential.
Trust that systems can’t be manipulated.
For InsurTech companies, that trust is constantly tested.
InsurTech platforms handle vast amounts of personal and financial data.
Regulators, insurers, and partners increasingly expect proof of security maturity.
This is where SOC 2 becomes critical.
Why InsurTech Platforms Are High-Value Targets
InsurTech systems attract attackers for one simple reason. Data.
They store:
- Personally identifiable information (PII)
- Financial records
- Claims and underwriting data
- Identity documents
This makes them prime targets for:
- Fraud
- Identity theft
- Account takeovers
- Insider abuse
A single breach can damage customer confidence and insurer relationships overnight.
Compliance Pressure Is Rising in Insurance
Security expectations in insurance are no longer optional.
InsurTech companies must now consider:
- PIPEDA requirements for protecting personal information in Canada
- Increasing scrutiny from insurers and reinsurers
- Alignment with cyber expectations influenced by OSFI guidelines
- Third-party risk reviews from partners
Informal security is no longer enough.
Why SOC 2 Fits InsurTech So Well
SOC 2 was built to answer one question:
“Can we trust how this company handles data?”
For InsurTech platforms, SOC 2 helps demonstrate:
- Strong access controls
- Secure data handling
- Continuous monitoring
- Incident response readiness
- Vendor and third-party oversight
It gives insurers and partners a familiar, independent assurance report.
Quick Snapshot: SOC 2 for InsurTech
| Who needs it | InsurTech and insurance SaaS platforms |
| Primary risk | Exposure of policyholder data |
| Key driver | Insurer and partner due diligence |
| Outcome | Faster onboarding and increased trust |
Addressing InsurTech-Specific Threats
SOC 2 (and ISO 27001) help mitigate threats common in insurance platforms, including:
- Claims fraud through compromised accounts
- Identity theft from exposed customer records
- Insider misuse of sensitive data
- Third-party service provider breaches
Controls are designed, tested, and proven not assumed.
SOC 2 vs ISO 27001: How InsurTechs Use Both
These standards serve different purposes.
- SOC 2 focuses on operational trust and reporting.
- ISO 27001 focuses on governance and risk management.
Many InsurTechs use:
- ISO 27001 to structure their security program
- SOC 2 to demonstrate that security to insurers and partners
Together, they form a strong compliance foundation.
Facing insurer security reviews or partner questionnaires?
Accelerate SOC 2 readiness and build trust with insurers and reinsurers.
Third-Party Risk Is Under the Spotlight
InsurTech platforms rely on:
- Cloud providers
- Claims processing vendors
- Data analytics tools
Insurers increasingly assess your vendors as well as you.
SOC 2 requires formal third-party risk management, helping you:
- Vet vendors
- Document security expectations
- Monitor ongoing risk
This is now a baseline expectation in insurance.
Why Cyber Insurers Care About Formal Frameworks
Even cyber insurance providers are raising the bar.
Many now expect:
- Documented security programs
- Incident response plans
- Evidence of monitoring and controls
SOC 2 and ISO 27001 help meet these expectations and may even influence coverage terms.
Not sure what insurers or partners expect from your security program?
Get clarity with a SOC 2 readiness assessment and avoid last-minute pressure.
How Canadian Cyber Supports InsurTech Compliance
We work with InsurTech companies across Canada and North America.
Our services help you:
- Prepare for SOC 2 audits
- Align with PIPEDA and insurance expectations
- Support insurer and partner due diligence
- Build long-term security maturity
Practical, regulator-aware compliance. Built for real insurer scrutiny.
Security Is Now Part of the Insurance Value Chain
InsurTech is about innovation.
But insurance is about reliability.
SOC 2 helps bridge that gap showing that modern platforms can be innovative and secure.
Final Thought
In insurance, trust is everything.
SOC 2 helps InsurTech companies prove they deserve it—by protecting policyholder data,
meeting compliance expectations, and standing up to scrutiny.
Strengthen InsurTech security with SOC 2.
Partner with Canadian Cyber for compliance confidence.
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