Top 10 Complaints Against P/C Insurers By Market Examiners

According to a new report, the top two criticisms reported by market conduct regulators against property/casualty insurers are failure to handle claims within specified time frames and using unapproved forms and rates. Wolters Kluwer, a financial services company created a report listing the top 10 criticisms found on U.S. insurance market conduct exams. [twitter.com/PCITplus]

This was the company’s ninth annual report showing that claims handling, licensing and underwriting issues continue to dominate regulators’ complaints against insurers.

Kathy Donovan, Senior Compliance Counsel, Insurance at Wolters Kluwer Financial Services said, “The regulatory landscape is getting more complex as industry requirements, laws and regulations change constantly under the direction of government and industry oversight, making it extremely challenging to embed regulatory requirements into claims, underwriting and distribution processes. Strong regulatory change management processes and frequent self-audits are extremely effective in helping stay on top of these changes.”

Regulatory Issues worry Insurance Executives

One of the biggest challenges insurance executives face these days is not achieving the sales targets; it’s the constantly changing government regulations that’s hampering their momentum, and forcing them to go back to their books and comply with the regulations.

A recent survey conducted by KPMG – Insurance Industry Outlook Survey – KPMG highlights that changing government regulations is one of the latest worries insurance executives are facing. More than 60 percent of the respondents from the insurance industry felt that these rules will hamper their strategy and growth prospects in coming years.

The business of insurance takes into consideration all the various regulations and reforms that affect their operations. A reform in the rules of another industry could directly or indirectly affect the insurance industry such as healthcare reform, tax reform, accounting changes and increased regulatory oversight both domestically and internationally. Executives felt that the Affordable Care Act (ACA), amongst other new regulations, has affected insurance industry the most.