Spike In Legislative And Regulatory Activity Puts Increased Demands On Insurance Organizations

Waltham, MA (CompNewsNetwork) - A research report released by Wolters Kluwer Financial Services’ Insurance Compliance Solutions group shows 2009 legislative and regulatory activity for the insurance industry has increased considerably when compared to the previous two years.

The recent study analyzed state and federal laws and regulations that pertain directly or indirectly to the U.S. insurance industry—a universe of nearly 270,000 items, which includes individual sections of law and regulation, plus advisory documents, such as bulletins and attorney general opinions.

From January to July 2009, more than 10,000 pieces of legislation with potential effects on the insurance industry had been introduced throughout the U.S. This is more than a 70 percent increase over the same period in 2008, and nearly a 50 percent increase over the same period in 2007.

“While this data shows that 2009 is shaping up to be a very active year, it also illustrates that staying on top of legislative and regulatory activity is a challenge that’s growing,” said Kathy Donovan, senior compliance counsel at Wolters Kluwer Financial Services.

According to Wolters Kluwer Financial Services’ research, nearly 26,000 state and federal laws and regulations pertaining to the U.S. insurance industry will change or be created this year. Additionally, about 30 percent of the regulatory activity through July of this year affects all lines of insurance business.

“With insurers of all types facing significant activity while trying to operate under tighter budgetary requirements, there is a great need to eliminate the highly manual processes of managing regulatory activity,” said Daryl James, product manager for Insurance Compliance Solutions at Wolters Kluwer Financial Services. “Insurers need to explore and invest in ways to better monitor the environment and minimize costs associated with non-compliance.”

Costs can be direct, such as increased exam activity and associated fines that result from non-compliance. However, there are also hidden costs, including possible future lost business due to higher profile instances of non-compliance.

About Wolters Kluwer Financial Services

Wolters Kluwer Financial Services provides best-in-class compliance, content, and technology solutions and services that help financial organizations manage risk and improve efficiency and effectiveness across their enterprise. The organization’s prominent brands include Bankers Systems, VMP® Mortgage Solutions, PCi, AppOne®, GainsKeeper®, Capital Changes, NILS, AuthenticWeb™ and Uniform Forms™. Wolters Kluwer Financial Services is part of Wolters Kluwer, a leading global information services and publishing company with annual revenues of (2008) €3.4 billion ($4.9 billion) and approximately 20,000 employees worldwide.