Back Compliance Awareness

Insurance Networking News says, "In today's world, Insurance and Financial Services organizations are challenged with managing an increasingly complex and ever changing regulatory landscape. Regulators are raising the bar and have increased their scrutiny of organizations in a number of critical areas, including claims, policy holder complaints, sales practices and insurance licensing and securities registration." "In order to manage increasing compliance pressures, financial services organizations are looking for ways to optimize all internal processes to help manage and document the compliance process. Some companies have partnered with external vendors to assist with process optimization, though most companies tend to keep compliance management inside their organization." One such service which combines external and internal compliance is the Insurance Compliance Awareness Network [I CAN]. By providing regular Alerts and frequent Discussion e-mails to underwriting, claims, and marketing staff, the need to know and comply with laws and regulations is kept prominent in their minds and practices. If you have had to re-write a book of business or refund premiums or resettle claims due to non-compliant actions, the value of avoiding market conduct citations is well known. Contact I CAN if you are interested in obtaining such "keep compliance in mind" service: icanalert@comcast.net

As we start a new year, it is time again to think about how best to make staff, be they underwriting, marketing, or claims, aware of all that is needed to comply with the laws and regulations governing the insurance business. Having access to databases of laws,even if given interpretations, is of little good if staff never thinks to look there. Even if routine markets and practices makes staff familiar with the essential compliance requirements, it does not help them keep current with changes in regulations or interpretations of them. That is where the Insuance Compliance Awareness Network [ICAN] can help. By regularly calling attention to the need to comply through regular and frequent Alerts and Discussions via e-mail. Is there another good resource for such attention getters? If so, please advise via this site. If you think such alerts would prove helpful, also pleae respond.

New technology and the better use existing technology, would seem to make regulatory compliance asier to facilitate. And, it probably does, so long as agents, underwriters, and adjusters stick within the "system." But, people being people, there is a tendency to work outside the box to make deals, sell policies, close out claims, meet corporate goals and the like. In California, one underwriting office ignored the "treat all similar customers the same" requirement and used a second system to process business for a few agents at higher commission and lower prices just to meet corporate goals. When the state examiners discovered the discriminatory treatment, the company had to rewrite several thousand policies and refund a bunch of money and pay a hefty fine. Being aware of compliance and what non-compliance can cost is imporant. Getting people to be aware takes regular and frequent reminders that compliance is an imporant part of the job and is checked by the state. HOw do we keep that in the minds of the front line people doing busines for us? ICAN is one answer. Interested?

Check out our new website www.willcomply.com Ken Kenneth Kukral, CIC President & CEO International Excess Companies 26451 Curtiss Wright Pkwy. #103 Richmond Hts., OH 44143-1437 PH 1-800-937-3497 X 2082 FX 216-797-2032 Check out our award winning websites at: www.intlxs.com www.xsprograms.com www.getguardinsurance.com www.ezfloodquote.com www.wsibinsurance.com

Regulatory compliance information is vital to keeping licenses and avoiding fines. Those providing such information in an active and accurate way are key players in helping agents and insurers meet state and, potentially, federal standards. But, the existance of such information is of less value if no one thinks to go look for it. Yes, excess lines policies may have to pay state taxes. But, if I don't think about the need to comply, I may not even worry enough to go look for the information available. That is why the Insurance Compliance Awareness Network offers to provide agency personnel and company underwriting and claims personnel regular and frequent e-mail Alerts and Discussion pieces to remind those perople of the need to check the applicable laws and regulations. If the need is put in front of you with examples of the regulations that must be applied, you are far more likely to remember to check things out before the policy is issued or claim adjusted than if no one ever mentions the need to check the regulatons. TRY TO COMPLY.

In an industry advertisment for compliance supporting systems it says, "Compliance requirements for the insurance industry have changed radically in the last three years, including the enactment of the USA Patriot Act and Sarbanes Oxley (SOX) for public companies. Now, the National Association of Insurance Commissioners is implementing SOX-like requirements for private companies. Insurers of all types and sizes have to be concerned and will continue to face new compliance challenges in the future." The need to comply applies to producers as well as insurers. Market conduct examinations look at how agents comply, how they treat their customers - look at what New York has done in the scandals there. Systems are good, helpful, and in this day and age, necessary. But, systems won't succeed in keeping all transactions, all documentation, all quotes and declinations in compliance without the active participation of agents, underwriters, and claims adjusters. To keep agents, underwriters and claims adjusters thinking of the need to comply when making decisions, when documenting files, when entering information into systems, regular and frequent reminders of the need to comply is useful. The Insurance Compliance Awareness Network [ICAN] offers such reminders via e-mail. Interested? Contact icanalert@comcast.net.

With the current financial failures, compliance is going to become an even bigger concern in all financial markets, including property/casualty insurance. AIG's crisis will not disappear quickly. All insurance organizations need to look to how well they currently comply with laws and regulations and correct any deficiencies quickly. Insurers may not be the cause of the financial turmoil, but they will not escape being blamed as part of it. Tools to make compliance requirements are available, but underwriters, agents, and claims adjusters need to think about how best to comply rather than just counting on the computer to do it all right. Shifts from a soft market to a hard market pricing must be justified by changes in conditions of the risk. Not just because it could be made. Try to Comply! icanalert@comcast.net

A recent article said in part: "New Regulations and Firmer Market to Shape 2009 January 21, 2009 For the property/casualty industry, 2009 will be "transitional if not transformational" according to a new report from the global insurance center of New York-based Ernst & Young. An area in which carriers should steel themselves for change is the area of regulatory oversight. "Momentum for change in the insurance regulatory structure is building, and the near-term uncertainty about the outcome presents challenges for the industry," a report states. One certainty, according to the company, is that carriers will need robust risk management abilities to deal any forthcoming regulatory initiative. "Regulation is likely to be more intrusive, encompassing more continuous monitoring of activities and financial performance, perhaps with higher standards of solvency over the longer term," the report says." Compliance awareness may be now ore important than ever before as states struggle to prove that they are doing the necessary regulatory activity to prevent an AIG type problem to impact their contituents. Insurance Compliance Awareness Network

With the economy in decline, states are going to be looking for money wherever they can find it. One source may be to respond to the charges that poor regulation led to the present recession by stepping up market conduct examinations, imposing stricter interpretations of laws and regulations, and fining companies larger amounts. This kind of action will respond to several of the accusations made recently that poor enforcement of laws and regulations allowed businesses to operate outside the rules and that led to the collapse. To address this potential threat, making the need to comply a regular message to underwriters, adjusters, and agents can be a powerful tool. A regular and frequent message that one must take the time and make the effort to find out what the laws and regulations are and then to follow them can keep this important condition in the front of underwriter and adjuster minds. It is important and grwoing more so. I CAN ALERT - the Insurance Compliance Awareness Network Alerts can help keep the need to comply in front of those directly effected. icanalert@comcast.net

Please delete this thread. I understand that there is a certain level of polite spam that is tolerated on this board but this guy crosses the line in my opinion. This board could become a more valuable tool for agents if this type of stuff was kept under control.