How Cloud Integration Can Deliver Secure Data Integration and System Modernization

Historically, Insurance companies kept their databases on-site where only the company had access to this information. But today, with an accelerated move to the cloud due to the pandemic, insurers are having a difficult time storing, processing and securing the massive amounts of disparate data being generated.  

In this scenario, insurance companies have to hire teams of developers to secure the data, which is often stored in multiple siloed applications. When data sits in different silos, encrypting and securing this information is often not done centrally, which means that developers are burdened with the task of manually securing data on an application level. This not only complicates the tracking and protection of information, but it also makes it difficult to create multi-level encryptions as the data moves from legacy to modern systems.

The Business Case for Cloud Integration

Cloud integration delivers the reliability, immediacy and functionality that modern consumers are after and that modern insurance companies need in order to stay ahead of the competition. Because the data is now hosted in another environment, IT managers technically don’t have as much control over the company’s information as they did in the past. This is an important consideration given the potential penalties that insurers face should they not comply with data protection and privacy legislation, like GDPR and SOC2, which dictates how personal data must be managed, collected, shared, and secured. These compliance standards assess how a company safeguards customer data and how well the controls they have put in place are being executed.

Failure to comply with specific data security requirements while modernizing legacy systems can cause security vulnerabilities and could see insurance companies having to pay severe fines.  Google, Amazon, and Meta are key examples of organizations that have all paid huge fines in recent years for failing to properly disclose how customer data was being used. Currently, there are various Software as a Service (SaaS) solutions that combine data from multiple data sources into a single, consistent data store. With the volume, variety and complex security requirements of incoming data growing exponentially, it becomes almost impossible for these inflexible tools to keep up.  

Beyond the financial implications of failing to effectively secure customer data, should an insurer demonstrate a lack of care when it comes to safeguarding customer information, their existing customers will lose faith in the insurance agent's ability to handle their information with care. Likewise, business partners and brokers will be hesitant to work with insurance companies again in the future.

Synatic’s approach to Secure System Modernization

This is where Synatic’s approach towards hybrid data integration comes into play. By automating compliance measures, cloud integration streamlines the compliance process and, thus, reduces risk. Synatic’s Nimble, Simple and Powerful Hybrid Integration Platform (HIP) allows businesses to unlock new opportunities to securely connect disparate systems, break down data silos, modernize legacy systems, all while maintaining security protocol.

Synatic can be deployed in a number of different environments. With Synatic, insurers have the freedom to choose the deployment method that works best for their organization. Whether they want to modernize their systems through their own on-premise network, Synatic’s AWS cloud services or a combination of environments, Synatic can cater to all their needs.  

With Synatic’s unique Relay functionality, which can be installed behind the legacy system's firewall, it is possible to circumvent the need to pass data through a server during legacy system modernization where it is vulnerable. Synatic is SOC2 compliant and uses fully encrypted channels to ensure that data is always secure. This eliminates the need for additional encryptions by enabling insurance companies to modernize their systems and maintain their own security protocols. Alternatively, insurers can house data within Synatic’s cloud environment, where complex integrations can be performed securely and data can be safely integrated with tools like Salesforce CRM, as well as other ERP and marketing tools.

As more and more insurance companies operate with a hybrid business model, incorporating SaaS and on-premises applications, there is a greater need to securely get the right data, to the right person, at the right time. If insurers are going through three or four steps to move data between solutions, they are opening themselves up to more risk and increasing the likelihood of data breaches. The idea behind integration is to forgo complexity in favor of simpler, faster, and more efficient business processes.

If you’re searching for a way to maintain your existing safeguards and security protocols while also ensuring that data privacy and security measures are implemented in every system and at every point of interconnection, contact Synatic today.

Andile Khumalo
June 28, 2022
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