2018 Insurance Regulatory Outlook
Forging ahead amid uncertainty
Technological innovation, aging populations, and climate change have all caught the attention of the regulatory and supervisory community as emerging risk areas. We expect some supervisors to begin to challenge boards, risk committees, and senior management to demonstrate that they understand the impact on their customer bases, business models, and risk profiles—and that they are set to take effective mitigating actions where needed.
Find out in our 2018 Insurance Regulatory Outlook how to gain insight into key regulations that insurance companies should be monitoring and addressing in 2018.
Key regulations that insurance companies should be monitoring and addressing in 2018:
- Cyber regulation. "Secure your environment”, “Know and limit access” and “Detect and respond” says The Society of Worldwide Interbank Financial Telecommunication (SWIFT) network.
- Best-interest standards. DOL’s Rule progression, the SEC drafting of a rule, individual state legislation, and adoption of the NAIC model regulation by individual states are only a few of the emerging scenarios to help operate more in the best interest of the customer.
- Big data: Big issues, big potential rewards. Where do we draw the line? The value and validity of genetic information is indisputable, but should it be usable?
- Enterprise risk management and Own Risk Solvency Assessment (ORSA). Although insurance companies are naturally in the business of managing risk, the new requirements are taking time and effort to formally adopt.
- Corporate governance disclosure. This may have been a quiet issue lately, but it’s one that most insurers will need to begin addressing soon.
- Market conduct. The NAIC and state Departments of Insurance (DOIs) continue to focus considerable resources on market conduct exams and analysis.
- International regulatory change. Both US and international insurers would be well-advised to stay on top of global regulatory developments and continuously assess the potential impact on their business models.