Andesa Services Reinforces Security Posture with Successful SOC Examinations
Andesa Services, a provider of policy and benefit plan administration solutions, announced the successful completion of its SOC 1, SOC 2, and SOC 3 examinations. The achievement demonstrates the company's commitment to security and compliance controls. Such certifications are increasingly critical for technology vendors serving regulated industries like insurance and finance.
- The successful completion of SOC 1 Type II, SOC 2 Type II, and SOC 3 examinations are based on standards set by the American Institute of Certified Public Accountants (AICPA). These are widely recognized benchmarks for the level of internal controls and security a service organization has in place. - A SOC 1 report focuses on a service organization's internal controls that are relevant to a client's own internal control over financial reporting. This is particularly important for Andesa's clients in the life insurance and annuity sectors, as they often outsource policy and plan administration. - The SOC 2 report addresses a company's controls related to security, availability, processing integrity, confidentiality, and privacy. For Andesa, the SOC 2 Type II report specifically examined the design and operational effectiveness of its controls related to security and availability over a period of time. - Unlike the restricted distribution of SOC 1 and SOC 2 reports, the SOC 3 report is a general-use summary of the SOC 2 examination. This allows companies like Andesa to provide a public-facing attestation of their security posture without disclosing sensitive details about their internal controls. - The scope of Andesa's annual SOC audits is extensive, covering its policies and procedures, software development lifecycle, data centers, logical access, and disaster recovery, among other operational areas. The company received an unqualified opinion from the independent public accounting firm that conducted the audits, indicating that its controls meet or exceed the strict criteria. - For technology vendors, SOC compliance is becoming a baseline requirement for enterprise buyers, with a reported 23% increase in SOC 2 reports issued in 2023. This demonstrates a growing demand for independent verification of security controls. - The increasing adoption of AI in regulated industries amplifies the need for robust security and compliance frameworks. SOC reports can provide a level of assurance regarding the control environment of third-party vendors, which is a critical component of AI governance and risk management. - Andesa's infrastructure includes geographically separate U.S.-based redundant data centers, a formal vulnerability management program, full data encryption, and multi-factor authentication for network and application access. These are key elements that would be evaluated during a SOC 2 examination.
