The world of insurance company regulatory compliance can be complex and difficult to navigate. To make sure your insurance company stays compliant with relevant government and industry regulations, you need to stay on top of the ever-changing updates to the compliance environment and be prepared if you are ever faced with a regulatory audit. It may help to make sure you do internal audits of your own on a regular basis and make sure your entire team is on the same page.
Know Which Insurance Company Regulatory Compliance Agencies Apply to Your Company
Here are some of the main regulatory compliance agencies. Even if some of the following agencies do not pertain to insurance company at the moment, you should still be aware of their functions and any updates just in case someday they do.
- The National Association of Insurance Commissioners (NAIC) – This agency is in charge of regulation standards and market conduct. They ensure consistency and continuity across all states to streamline laws and regulations.
- The Financial Industry Regulatory Authority (FINRA) – This agency monitors distribution through brokers for investor protection.
- The Securities and Exchange Commission (SEC) – This agency monitors products involved in securities.
- The Federal Reserve – This agency has many different functions but does monitor some insurance agencies, making compliance even more complicated.
It is always wise to stay aware of these agencies and understand their roles in your company.
What Compliance Issues Do You Need to Know?
No matter what form of insurance you specialize in—annuities, health, or property and casualties—there are insurance company regulatory compliance issues that affect your business on state, federal, and global levels. To protect your business, your clients, and your reputation, you need to know which regulations apply to your specific insurance company. Here are some compliance issues most insurers need to keep in mind:
- Data Protection – Your clients’ security should be one of your primary goals. There are many regulations regarding this, and you should have a plan in place regarding your cyber security and how to respond if a breach occurs. Because of recent data breaches, the insurance business is becoming more like the banking industry, and it’s likely that insurance company regulatory compliance will tighten on cyber security in the years to come.
- The Payment Card Industry – While offering credit card payments may give you a competitive edge, it is also teeming with risk, and you need to make sure you know the regulations governing payment cards and stay in compliance.
- Global Governance – If your company operates on a global scale, you need to stay updated on matters related to capital standards and systematic risks.
With such complicated insurance company regulatory compliance issues from so many different regulatory agencies, you need to ensure that you have someone in your company who is an expert at keeping on top of these matters. There is a lot at stake, so you may want to hire a firm that deals with compliance issues and helps with insurance management. To learn more about how our services can help your business, contact us today at Venture Captive Management, LLC.