Change is a fact of life, and regulatory change is a large part of the lives of insurance professionals. Even a seemingly minor regulatory change can have a major impact. Like a complex chain reaction, each new regulatory update kicks off a series of dependent, interconnected changes across all stakeholders involved in the process of licensing agents, advisors, and adjusters to sell or service insurance.
So, how do you keep up with those changes? How do you avoid feeling blindsided?
The plain answer is to be proactive and create a solid infrastructure for change management. By preparing for regulatory change, not just responding to it, you can leverage your agility to keep ahead of the competition.
Plan to plan ahead
Changes to state and federal legislative statutes typically arise out of a few common concerns, such as consumer protection, ensuring uniformity with other jurisdictions, or security and technical interests. The groups that take action in response to these concerns—the drivers behind regulatory change—include federal and state legislators, trade groups, departments of insurance staff, and the NAIC, just to name a few. Of course, there are many other factors at work, but you can anticipate what changes are forthcoming by paying close attention to these key groups and their activities.
If you establish compliance governance practices early in your operations, your organization can be ready to adapt when the final version of a regulatory change comes out.
Keep your team informed
In an environment with 50+ jurisdictions changing all the time, keeping everyone up to date on the latest best practices is crucial. Developing and executing a comprehensive informative communication strategy with your legal, IT, operations, and sales teams is essential for ensuring you’re in compliance by the time a regulatory change takes effect. The change and its necessary compliance measures should be communicated broadly across your business, especially to any affected customers.
If you are working with a third-party solution provider, they should always be well informed of upcoming regulatory changes.
Trust experienced solutions providers
The most important way to manage regulatory and legislative change is to establish a relationship with the right technology partner. A knowledgeable solution provider can help you mitigate the impact of regulatory changes and adapt to situations faster. Sircon Producer Central by Vertafore reduces compliance risk and enhances efficiency with built-in compliance rules that streamline regulatory transactions. Producer credential management is the foundation of the Sircon for Carriers portfolio. It is the only software solutions designed for all compliance stakeholders, and with this solution you can enjoy the confidence of consistent and transparent regulatory compliance management.
If you still have questions about refining your regulatory operations, the ebook “Building a Foundation for Compliance Changes” can provide further answers.