Removing Insurance Compliance Constraints

Compliance is no stranger to insurers.  Although talking about compliance can elicit groans and rolling eyes, I want to discuss how compliance can be made easier and less costly.  Managing compliance today enables faster reactions to future regulations.

There are two keys to better managing compliance constraints and helping to drive down the cost of compliance. First is to establish an enterprise-wide compliance process. Yes, departments need their own specific practices, but an umbrella process promotes consistency and accuracy.  Both of these things are essential with compliance.  Consistency helps processes to be scaled and adjusted quickly.  Accuracy is a pinnacle of compliance requirements with lasting, costly effects.

The second approach is via technology.  Insurers should seek compliance centralization to one or few applications, as well as identifying applications with built-in compliance functionality.  Both of these can be achieved with a single rating engine.  Managing audits and compliance tracking from a single application or consolidated applications, such as a modern, stand-alone rating engine, will minimize data inaccuracies, create the most efficient solvency process, and ultimately lower the cost of compliance.  Consolidation of technology applications in general will improve compliance headaches.  Additionally, Built-in compliance functionality in any application reduces the cost of compliance because compliance tasks are not separate functions from day-to-day activities.  Advanced compliance features include:

·         Security

·         Auditing

·         Change management

·         Reporting

Better understanding compliance requirements and constraints they place on your business will help to identify areas of improvement.  Compliance laws and requirements will always exist and always be changing.  Automating processes and maintaining corporate-level requirements will drive down the cost of compliance and lessen these burdens.

If you're interested in reading more about removing compliance constraints, please download my recent white paper, Conquering Compliance: Automating and Managing Compliance in Insurance Systems.

Nicole Bruns is a product marketing analyst for Oracle Insurance, responsible for P&C insurance products.

Comments:

Not a bad idea. I need to see how it applies to my field of long term insurance.

Posted by Rusty Delgadillo on May 21, 2010 at 04:59 PM EDT #

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