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The modernization of insurance compliance
Enabling and driving with the speed of business
Deloitte understands the importance of modernized insurance compliance and helps clients align their business strategy to drive toward efficiency and effectiveness.
- The new imperative in insurance
- Modernized compliance program
- Drivers for modernizing compliance
- Plan of action
- Cost savings, resource optimization, value creation
The new imperative in insurance
The pressures are mounting for chief compliance officers of insurance companies from both internal and external sources. Increasing regulatory mandates, perpetual talent squeezes, mounting demand for increased cost reductions, and a growing need for additional capacity for new and emerging risks and regulations are challenging insurance companies. To thrive and take the lead, business leaders need to address issues head-on.
Drivers for modernizing compliance
Pressure for change is coming from many directions, including internal challenges, emerging technologies, and regulatory pressures.
- Internal challenges can include lack of executive leadership buy-in, fragmented regulatory and compliance change management, lack of compliance strategic vision, and disparate risk methodologies.
- Emerging technologies can include:
- Regulatory technology, specifically cognitive compliance, risk sensing, and automation/robotics-integrated governance, risk, and compliance.
- Big data and analytics, including increased use of unstructured, high-volume data to drive risk identification and process enhancement.
- Regulatory pressures can include heightened standards and expectations given size and complexity of operations/services, as well as increased regulatory examination and inspections.
Cost savings, resource optimization, value creation
For a top-tier global insurance provider’s compliance division, a desire to cut costs, empower highly skilled resources, and bring value back to the business and its shareholders was crucial to defining success. Through a series of workshops and intensive documentation analysis, Deloitte Risk and Financial Advisory assisted the provider in developing a road map that created potential savings of more than $8 million annually, and an operating model that was designed to fit the needs of the business both now and in the future.
By considering successes and challenges within compliance and analyzing current organizational costs, Deloitte Risk and Financial Advisory developed a series of scenarios for consideration that employed changes to people, processes, data, technology, and governance within the organization. Implementation was expected to increase span-of-control across the organization, while producing a more agile compliance talent pool to address future compliance needs.
Learn more about Deloitte Risk and Financial Advisory.