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
    Complaint Handling
    Employee Training

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. 

     Typical Issues

     Use of Out-of-Date Forms                             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. 

     Examples

     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
Senior Consultant
800-927-2730 X 2740
CJ.Rathbun@firstconsulting.com