2021 insurance regulatory outlook
The state of regulations and compliance in insurance
Discover the insurance industry regulation and compliance trends that leaders and decision makers should be tracking and addressing in 2021.
Insurance regulatory focus areas for 2021
The following trends could have a significant impact on the
business and operating environment for insurers in 2021 and beyond:
- Digital transformation and data
- Operational resilience and workforce transformation
- Financial resilience
- Evolution of state-based regulation
- Climate risk
Regulators continue to refine existing regulations and expand into new areas such as climate risk and insurtech supervision. Meanwhile, recent regulatory actions send a clear message that insurers can anticipate higher levels of accountability and enforcement moving forward and that stateand federal regulators are not easing up on their expectations.
Data remains a key focus, with both privacy laws and increases in pandemic-related digital customer engagement requiring insurers to increase focus on data governance. Also, there continues to be a heavy focus on the ability to operationalize core risk management and compliance frameworks, principles, and requirements within a firm’s operating model and culture.
All these regulatory trends are expected to have a major impact on the insurance industry over the next 12 months, and require close monitoring and action from leadership.