2022 insurance regulatory outlook

Forward progress on capital standards, digital transformation, ESG regulations, and more.

With disconnected state, federal, and global agency stakeholders, insurers must remain vigilant

Insurance regulations and compliance

Throughout 2022, a regulatory challenge facing insurers will be balancing the ever-growing list of high-priority areas for governing agencies. On top of traditional focus areas like insurance group capital, the pandemic has accelerated the use of, and compliance requirements related to, digitization. Data security and consumer protection, climate and environmental impacts, digital assets, and the convergence of sector sales are also significant concerns.

Among the topics presented in our 2022 insurance regulatory outlook are:

  • Insurance group capital – Development of Insurance Capital Standard (ICS) continues: At the international level, ICS 2.0 is currently in a five-year monitoring period. Domestically, the Aggregation Method is being reviewed for compatibility, and the Group Capital Calculation is subject to a trial implementation period and law adoption by states in consultation with the Federal Reserve.
  • Convergence in life and annuity insurance sales – As insurers seek to grow sales of life and annuity products, particularly through third-party entities, such as independent marketing organizations, they also face increased state and federal regulations as well as examination and enforcement risks. Implications include insurers operating in a “best interest” role for clients, annuity standards expansion and supervision, disclosure of conflicts, and others.
  • Intersection of digital, insurance, and regulation – Insurers are pondering the digital dimension for applying digital techniques to improve their compliance programs, particularly in areas including customer data protection.
  • Consumer protection and data focus – With customer portals expanding, advanced modeling techniques are leveraged; and as threats grow, regulators are focusing on whether data is used appropriately, used with permission, and is secure and well-guarded.
  • Privacy and cybersecurity – The insurance industry, and its regulators, are not taking cyberattacks lightly. A complex network of state requirements is only expected to grow, with particular attention around Model Law 668.
  • Digital assets – The advancement of blockchain, cryptocurrency, and other items that are part of the Digital Asset ecosystem has had exponential growth. Regulators are, of course, concerned about customer protection, economic loss, and consumer education.
  • ESG – Environmental, social, and governance will remain a central focus of regulators in 2022. We expect the Federal Insurance Office, National Association of Insurance Commissioners, and SEC will continue to assess the impacts of climate change on the US insurance industry and explore increased regulation in this area (disclosures, risk, resiliency, etc.)
2022 Insurance Regulatory Outlook

2022 insurance regulatory and compliance insights

Select from the latest Center for Regulatory Strategy releases below to learn more about insurance regulations and insurance compliance trends we are monitoring.

After more than two years of pandemic impacts, the world is a different place. It seems as soon as some sense of stability sets in, a new and unforeseen risk emerges. Social and environmental movements have transformed the expectations of corporate responsibility. And digital technologies are rapidly evolving—many of which will be transformative to centuries-old financial systems. In this reality, regulators and the financial services institutions they supervise are racing to keep pace.

2022 Financial Services Regulatory Outlooks Collection

If you are interested in learning more about the insurance industry, check out our 2022 financial services insurance outlook here.

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