Compliance and regulatory concerns are nothing new for insurers but 2024 is shaping up as a particularly challenging year. Data privacy, cybersecurity, evolving consumer protection laws and documentation management are all top of mind, with our global survey and whitepaper The Carrier Perspective: 2024 Claims Insights revealing an increasing number of insurers intend to partner with compliance consultants and risk management experts to help tackle an era of unprecedented change. Beth Povey, Chief Compliance Officer, shares key findings from the survey and how collaboration can have a positive impact on insurers.
Data privacy tops compliance concerns
Data privacy and security is the primary compliance concern for insurers in 2024. Our research with 150 businesses in the insurance sector across the United Kingdom, North America, Australia and New Zealand, showed 75% of insurers pinpoint the issue as their number one compliance challenge. Not surprisingly, the ever-evolving nature of compliance is also causing concern, with 70% of insurers in the UK saying that staying abreast of compliance and regulatory changes is their second highest priority (compared to 65% globally).
Other compliance concerns include:
- Cybersecurity and data breach regulations – 70% of UK insurers (63% global)
- The adoption of consumer protection laws – 55% of UK insurers (47% global)
- Regulatory reporting and documentation management – 38% of UK insurers (43% global)
The value of external expertise
Given such growing concerns, it is no surprise that more insurers are looking outside their own four walls for support navigating the complexities of compliance and regulatory requirements. Our survey revealed that more than 40% of UK insurers are planning to leverage external expertise to ensure they remain compliant amid ever-changing customer-focused regulations.
As for where that support will come from, our survey identified an emerging trend around partnering with claims management providers, with insurers in the UK exploring this approach. It is that insurers across the globe are increasingly keen to work with compliance experts who not only know what it takes to meet today’s regulations but ensure they are ready to tackle tomorrow’s changes and challenges.
Partners need to prioritise cybersecurity
When collaborating with an external compliance partner, there are few more important issues to consider than data privacy and cybersecurity. As an insurer, it is one thing to know your data is encrypted or that you have a strategy to address a cyber event. It is another to have total confidence that your compliance consultant has a similar ironclad commitment to protecting the sanctity of both your information and that of your clients.
Seeking support from outside specialists is a proven way to strengthen one’s compliance strategy but it is essential for insurers to demand the highest standards when entrusting them with personal information. Be it compliance consultants or risk management experts, ensure they have the right technology, people and processes to avoid the kind of data and cybersecurity breaches that can create a compliance nightmare.
At Gallagher Bassett, we understand that choosing the right compliance consultant is crucial. That’s why we built our Carrier Practice model in collaboration with insurers, ensuring we are focused entirely on their unique goals and objectives and delivering unparalleled support and technology to safeguard their interests.
Contact us to learn how Gallagher Bassett can support you.
