Regulatory changes are a fact of life in the insurance business, and compliance departments within carriers are mature users of technology. That's according to a EY survey of 16 insurers that found 88% using tech for "basic functions, such as tracking new and amended laws and tracking action plans."
However, what's missing is an "advanced, integrated technology solution designed to meet [compliance]-specific needs, although some of the CCOs are in the process of building such a solution," the company wrote. Thomas Ward, EY partner, says that the main consideration for technology is how well it integrates across the enterprise to get relevant data.
"There's more and more reporting that is coming up through the CCO," Ward says. "We think the use of technology will evolve with it and improve the overall integration with the risk practices and the audit practices."
Today, a lot of the technology built for reporting is done on an ad-hoc basis, Ward adds. That's because compliance departments want to make sure the tech they use is right for the job, not just shoehorn in something off-the-shelf.
"This is an area where it's pretty consistent, and you look at some of what the CCOs were saying for the future, they're very much embracing the use of tech," he says. "But they want to make sure they really understand how it can help them."