Sharp Increase in Regulatory Risk Concerns for U.S. Insurers: Wolters Kluwer Report

Wolters Kluwer Financial Services’ new U.S. Insurance Regulatory and Risk Management Indicator reveals that overall levels of concern for compliance and risk within the industry have risen sharply. In the report released today, the main Indicator score rose to 146 from its baseline of 100 established in October 2013.

The report’s key findings include:

“Our Indicator highlights the significant obstacles insurers continue to face in both applying resources and establishing processes needed for a comprehensive approach to managing their greatest risk challenges as we get closer to ORSA implementation,” said Pam Ewing, general manager of Wolters Kluwer Financial Services’ Insurance Compliance Solutions. “We expect to see an even greater increase in the challenges organizations face as processes and programs are tested in the coming months.”

The company surveyed over 300 financial institutions to derive an “Indicator,” which measures ten critical factors facing the U.S. insurance industry. Seven factors are derived from direct input from life, health and property and casualty insurers on their top compliance and risk management concerns. The remaining three factors are based on regulatory data the company compiles, including number of affected citations, number of new enforcement actions/penalties, and value of the fines levied during the quarter measured.

Source: Wolters Kluwer Financial Services