US Insurance Compliance Survey 2009: Doing More With Less

by Michael Fitzgerald, November 5, 2009

Abstract

Regulatory compliance requirements have increased in recent months, and the outlook is for more scrutiny in the months and years to come. Activity is expected to increase, budgets will decrease, and current automation is not positioned effectively to respond.

In a new report, US Insurance Compliance Survey 2009: Doing More With Less, Celent details the responses of over 200 life, annuity and property/casualty compliance professionals to an online survey. The results describe a challenging environment for insurers’ compliance functions.


"We found that satisfaction with existing tools is only good to fair,” says Mike Fitzgerald, senior analyst with Celent's Insurance Group and author of the report. "Compliance solutions in use today tend to lack integration and consistency. The result is higher costs and lower quality of service."

This report offers specific recommendations to both insurers and vendors that are actionable within known budget and resource constraints.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

4

 

Methodology

4

 

Limitation

4

Respondent Demographics

5

Compliance Program Overview

8

 

Data Security

9

 

Federal Government Involvement

10

Costs and Budget

12

The Role of Technology

15

Next Steps

20

 

For Insurers

20

 

For Vendors

21

Leveraging Celent’s Expertise

23

 

Support for Carriers

23

 

Support for Vendors

23

Related Celent Research

24

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