What's Happening?
Insurance companies are increasingly outsourcing identity management to cope with regulatory demands and improve user experience. The Digital Operational Resilience Act and mandates from the New York State Department of Financial Services require robust
identity security measures, including phishing-resistant multi-factor authentication. Managing identity in-house strains developer resources and can lead to higher costs and security risks. Outsourcing allows companies to focus on core products while ensuring compliance and enhancing user experience through modern authentication methods.
Why It's Important?
Outsourcing identity management is crucial for insurance companies to remain competitive and compliant in a heavily regulated industry. By adopting external authentication providers, insurers can reduce the risk of data breaches, which are particularly costly in the financial sector. This shift also addresses developer burnout and allows for the implementation of advanced security measures without overburdening internal teams. The move towards outsourcing reflects a broader trend in the industry to leverage specialized technology solutions to meet evolving regulatory and consumer demands.
