Why does GovRAMP matter to the insurance industry?

From compliance to competitive advantage: Understanding the security framework that's reshaping vendor requirements.

What is GovRAMP, and why does it matter to the insurance industry

As more state and local governments adopt cloud-first strategies, the expectations for vendor security are increasing. Public sector buyers, too, want proof their technology partners can meet high security thresholds—and GovRAMP is one way to get independent validation.

GovRAMP, formerly StateRAMP, is a nonprofit technology framework designed to simplify and standardize the process by which cloud service providers demonstrate cybersecurity readiness to state and local governments. A similar security certification program known as FedRAMP exists for federal contractors. GovRAMP’s significance isn’t limited to government-serving IT teams, though, and for technology vendors—especially those offering SaaS or infrastructure solutions—this framework provides a guide to stronger security practices that benefit private sector companies, too.

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At a time when cybersecurity risks are rising for the insurance industry, GovRAMP isn’t just a competitive certification. It’s how future-focused insurers can securely grow their businesses with validated, integrated technology purposefully designed to withstand tomorrow’s threats. Even at the most accessible status level—GovRAMP Core—vendors are expected to implement foundational security controls and demonstrate a commitment to ongoing improvement, which is critical in a legacy industry where technology practices can become outdated.

GovRAMP Core status offers a meaningful starting point. It’s not a full audit, but it’s not self-attested either. The GovRAMP team reviews a company’s security posture directly, helping identify where processes are strong and where to improve. It’s a balanced approach—rigorous enough to be credible, but designed for practical implementation, too.

When a vendor appears on GovRAMP’s “Authorized” list, it confirms that the solution has been independently evaluated and meets widely accepted security standards. That can speed up procurement, reduce back-and-forth with IT teams, and expedite processes in states that have already adopted GovRAMP Core into their vendor vetting process.

GovRAMP helps companies accelerate their own security operations, and its standards align with the kinds of practices every responsible vendor should follow around access control, vulnerability management, incident response, and more. For teams that are scaling into regulated markets, that structure can help guard against the emergent cybersecurity threats a growing company is likely to encounter.

Though several other compliance frameworks exist, what sets GovRAMP apart is that it’s structured for the realities of working with state and local government, which is particularly important for insurers and their technology providers. GovRAMP certification offers the reliability of being a better, more secure technology provider overall—and that’s something every customer, public or private, is looking for.

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