Insurity Survey Reveals Technology Issues in Regulatory Compliance for P&C Insurers

By Arvind Arora
TMCnet Contributor

The evolution of new technologies and platforms has been benefitting the arena of insurance services as well, making the job of insurers easier, more effective and streamlined.

Insurity, Inc., a provider of policy administration, claims, billing and analytics software to a large number of insurance companies, has declared the results of its study that has revealed what kind of issues are being faced by Property & Casualty (P&C) insurers while they strive to improve their overall operational excellence and regulatory compliance. The company helps in processing billions of dollars of premium each month through its policy administration software and full service solutions to the property and casualty insurance market.

The new survey report was published under the Novarica Research Partners Program and concentrates on midsize insurers that have annual premiums ranging between $100 million and $1 billion and leverage ISO in one way or the other. Within the study, respondents expressed that regulatory compliance is mandatory and most of the insurers find it to be one of the most important strategies for their enterprises.

Additionally, the study results suggest that every day, products, processes and complexity are getting more complicated and challenging for the insurers. Though they are able to handle everyday data calls and stat reporting, but it indeed becomes a difficult task for insurers to keep products up to date and ensure the compliance of workflows and processes. Further, it emphasizes that the carriers have been spending considerable amount of their IT resources on regulatory compliance that will give a rise to the cost of compliance in the year 2014 as regulators are going to get more stringent in terms of scrutiny. While the insurers foresee no major difference arriving soon in market conduct examinations and financial audits, they are looking forward to much more scrutiny around their data and reporting, adds the study.

“When senior insurer executives talk about their strategic goals for their company, they often refer to speed-to-market, agility, and the ability to rapidly respond to market changes,” commented Karlyn Carnahan, chartered property casualty underwriter, principal with Novarica and co-author of the survey report. “But regulatory compliance, a critical capability for an insurer, is also increasingly seen as a key strategic priority, not just a tactical process required to keep the lights on. An insurer that is able to rapidly and accurately respond to regulatory demands is also typically an insurer that is nimble at reacting to market demands as well.”

Earlier this month, Insurity, Inc. integrated its solutions with CedeRight Reinsurance Solution software by DataCede, a P&C operational consulting and outsourced processing firm that has products tailored to the needs of P&C carriers and reinsurers.