In this article Luke Scanlon, Head of FinTech Propositions, Pinsent Masons LLP, provides practical guidance to insurers who have entered into outsourcing agreements in the light of EIOPA's draft guidelines on cloud outsourcing.

The guidance is still under development, but looks set to place strict regulatory demands on insurers in respect of both the contents of their contracts with cloud providers and their governance of those contracts. As a result, insurers should begin to review their contracts with cloud providers to prepare for new guidelines, which are intended to take effect in the sector next summer.