Operational Compliance Services
During the past 10 years, the importance of internal compliance in the insurance industry has expanded and matured into its current non-financial “Enterprise Risk Management.” Compliance Officers and staff are challenged to adhere to numerous state and federal laws, effectively monitor internal procedures and field practices, and strive to avoid risks to strategic company initiatives such as regulator penalties and fines.
First Consulting brings our expertise to the table to help in three ways: identify “gaps” by review of current procedures; help you assess priorities for a plan of action; and provide proven alternatives and best practices to help address the need to protect your company’s reputation and bottom line.
How do these steps work?
FIRST, you decide what function we will cover in an operational review. This determination can evolve from regulator concerns or from internal uncertainty about specific operational functions. These areas are evaluated against industry and regulatory perspectives, and compared to laws and company standards. Some areas often considered for such a review:
Internal Operations Market Activity
Company Operations Advertising Procedures
Policy Forms Advertising and Marketing Compliance
Policy Issue Supervision of the Field
Underwriting Marketing Practices
Replacement (Life & Annuity) Management Reports on Field Activity
Claims Trending & Monitoring
Currency with Laws
SECONDLY, the report resulting from this review identifies the risks uncovered and ranked in priority order, based on the potential negative impact to the company.
Use of Out-of-Date Forms
Incorrect Application of Filed Rates
No Feedback Loop for Law Updates
Incomplete or Over-Complete Complaint Logs
Lack of Follow-Up on Agent Misconduct
Irregular Communication to the Field
THIRD, we prepare a report of recommendations, including best practices, to strengthen those areas. If your company has progressed through steps one and two, we can still provide tested and proven options to implement monitoring and risk-mitigation tools that can help safeguard your company’s integrity.
Regular Communication Templates
Report Trending Protocols
Disciplinary Guidelines for the Field
More Effective Complaint Handling
Who do I contact with questions?
C. J. Rathbun, FLMI, HIA, AIRC, ACS
800-927-2730 X 2740