Navigating the Costs of Data Security: The Strategic Advantage of SOC 2 Audits

Dmitry Maslennikov on elevating standards

In the current tech-driven environment, companies must swiftly adapt to meet the evolving demands of the market, particularly within the insurance sector. Here, regulatory compliance and the secure handling of data have become paramount. Achieving certifications like SOC 2 and implementing robust development processes are not merely advantageous; they are essential for fostering growth and establishing trust. Dmitry Maslennikov, Head of Engineering at PerfectQuote, shared his expertise on how the company embraces these challenges to enhance its offerings. One of the most significant contributions Maslennikov has made to the industry is his work on data normalisation, leading to the development of a patented system that addresses the complex challenge of managing and comparing disparate data sets—a common issue in industries like commercial insurance. This patented technology offers a machine-learning engine coupled with a database and API, enabling highly focused queries on large sets of disparate data. In a world where data security is paramount, why is SOC2 certification particularly important for a company like PerfectQuote?

The Significance of SOC 2 Certification

For tech companies aiming to penetrate larger markets, obtaining SOC 2 certification is a vital milestone. “Achieving SOC 2 compliance is critical for establishing trust with our clients and ensuring that we meet the rigorous standards required for handling sensitive data,” Maslennikov believes. He emphasised that this certification process is not only crucial for scaling the company but also necessitates refining internal processes essential for businesses aspiring to excel.

PerfectQuote first achieved SOC 2 certification in 2019 and has maintained it annually. “While the process can be complex and demanding, it is indispensable for our growth. It streamlines our operations and ensures that we uphold the highest standards of security and compliance,” Dmitry Maslennikov noted. This dedication distinguishes PerfectQuote as an industry leader and aligns with increasing client expectations for transparency and security.

Moreover, Maslennikov highlighted the financial implications of data breaches, stating, “According to the IBM Cost of a Data Breach Report 2023, the average cost of a data breach has reached about £3.6 million, reflecting a 4.95% increase since 2021. Breaches involving lost or stolen credentials, as well as those impacting multiple countries or sectors, often incur even higher costs. For major incidents affecting over 50 million records, companies can face average losses of about £8.6 million. Additionally, businesses experiencing reputational damage from a breach may lose approximately 20% to 30% of their total breach costs due to diminished business opportunities. By investing in SOC 2 Type 2 audits, we can greatly reduce the likelihood of such incidents, which not only prevents immediate costs related to data theft but also safeguards our long-term business opportunities.

The cost of a SOC 2 Type 2 audit is estimated from about £16,500 to £64,000, depending on the size and complexity of the company, not accounting for additional expenses, such as staffing and software, which can further inflate the overall costs. For comparison, a SOC 2 Type 1 audit is generally less expensive, costing under about £14,000; however, lost productivity and other factors can drive the total expense above about £105,000.

Optimising Development Processes with GitLab CI/CD

Alongside robust compliance measures such as SOC 2, PerfectQuote has integrated advanced tools to enhance its development processes, notably GitLab CI/CD. “We utilise GitLab CI/CD to streamline our software development lifecycle,” Maslennikov confirmed.

While GitLab CI/CD primarily focuses on improving development workflows, it plays a vital role in supporting SOC 2 compliance. Here’s how:

a) Automated Testing: By integrating automated testing within the CI/CD pipeline, PerfectQuote ensures that code meets security and compliance standards before deployment. This is crucial for adhering to SOC 2's emphasis on security and operational integrity.

b) Version Control and Audit Trails: GitLab’s version control features maintain an audit trail of changes, which is valuable for SOC 2 compliance. This helps organisations demonstrate adherence to security protocols and internal controls.

c) Security Scanning: GitLab CI/CD allows for the integration of security testing tools within the CI pipeline, enabling early identification of vulnerabilities. This proactive approach aligns perfectly with SOC 2’s focus on security, making it an essential part of PerfectQuote’s strategy.

d) Efficiency in Development: The integration of GitLab has facilitated automation and improved collaboration among the development team, significantly reducing time-to-market for new features and updates. “By automating testing and deployment processes, we can focus on innovation rather than being bogged down by repetitive tasks. This approach enables us to deliver reliable software solutions to our clients efficiently,” Dmitry Maslennikov revealed.

The Necessity of Independent Security Testing

As cyber threats become more frequent, independent security testing is a non-negotiable component of PerfectQuote's operational strategy. Since 2019, the company has engaged in annual independent security assessments for its applications and infrastructure. “We believe that regular third-party testing is crucial for identifying vulnerabilities that internal teams may overlook. This proactive approach helps us fortify our systems against potential threats,” Maslennikov explained.

The emphasis on security not only enhances the reliability of PerfectQuote’s offerings but also fosters a culture of accountability and transparency within the organisation. “In an industry where trust is paramount, being able to demonstrate our commitment to security is vital for maintaining our clients' confidence,” Dmitry added.

Conclusion

In an era marked by increasing cybersecurity threats and stringent regulatory demands, it is essential for tech professionals to prioritise robust security measures and compliance. “Achieving SOC 2 certification is not just about meeting industry standards; it’s about building trust and demonstrating a commitment to safeguarding sensitive data,” states Dmitry Maslennikov. Furthermore, investing in SOC 2 Type 2 audits is vital for mitigating the financial risks associated with data breaches, which, according to the IBM Cost of a Data Breach Report, can reach alarming figures. To enhance compliance efforts, specialists should leverage tools like GitLab CI/CD. “Integrating automated testing and maintaining comprehensive audit trails are key strategies that not only streamline workflows but also reinforce adherence to security protocols,” Maslennikov advises. Lastly, organisations must prioritise independent security testing. “Regular third-party assessments help identify vulnerabilities that internal teams may overlook, ensuring a proactive approach to security,” Dmitry concludes.

By adopting these strategies—focusing on compliance certification, optimising development processes through advanced tools, and committing to rigorous security testing—tech professionals can create a resilient framework that protects against immediate threats while fostering long-term trust and success in an increasingly digital landscape.