A truly wonderful education experience, seemingly in all things regulatory, was in store for this year’s attendees in Scottsdale. With a number of regulators present, there were many opportunities for the assembled insurance compliance professionals to ask questions and learn more about regulatory trends in specific states. The individual state spotlight sessions also provided insight into current market regulation trends, as well as top “triggers” in these states for market regulation activities. And since one of the triggers is MCAS data, the individual sessions scheduled for life & annuities and property & casualty benefited all as they explained the new automated submission process as well as the new data elements. Information sessions on the latest from the NAIC and the IIPRC were also highlighted in the year’s school.
Hot regulatory topics were included in this expansive agenda with credit scoring and stranger-originated annuities. The use of credit scoring information by insurers is governed in many states by defined restrictions and required disclosures…all of which present regulatory compliance challenges for insurers. With states frequently proposing additional restrictions every year, and some actually having been implemented, it was both interesting and timely for having a session dedicated to this continuing key regulatory topic. While credit scoring is a concern for property and casualty insurers, an area of keen interest for life insurers is that of stranger originated annuity transactions. Attendees were able to learn more about how the regulators are viewing this issue and find out what steps insurers have taken to minimize these transactions.
The latest on federal issues, some from Dodd-Frank and others related to non-federal reform matters such as TRIA and NFIP were also covered. And while Dodd-Frank essentially left the insurance industry untouched in terms of direct hands-on regulation, the impact on the banking industry was detailed. This aspect is especially important for insurers with thrifts. Social media, the very much “now” reality that needs addressing, also had a dedicated session. Insurance companies are looking for ways to develop procedures to ensure appropriate use of this ever-increasing media art form.
What appeared consistently throughout the many sessions was the theme of compliance risk management. This is what market regulation serves to validate and the agenda delivered on that theme. From learning key points in managing multiple exams and market-related activity to developing an insurer’s market analysis function to making sure your regulatory compliance process changes remain sustainable, attendees were provided insight to take back to their offices. There has been, and continues to be, significant interest in enterprise risk management. In addition to a session on this key initiative, discussions and presentations throughout the school included references to enterprise risk management. From the NAIC’s Solvency Modernization Initiative to federal issues, there is a definite focus on “knowing the risks” and managing them.
Editor’s Recommendation: Keep current on compliance risk and enterprise risk management news and issues at RiskHQ.com (link to: www.riskheadquarters.com)
