11 July 2024
In today’s ever-changing regulatory landscape, insurers face mounting challenges in maintaining compliance. A recent survey by Gallagher Bassett, as part of The Carrier Perspective: 2024 Claims Insights report, provides insights into the primary compliance and regulatory hurdles insurers are facing. Most notably, data privacy and security compliance were identified as the primary concern by 75% of global insurers and 83% of their New Zealand and Australian counterparts.
A significant focal point for insurers worldwide is cybersecurity and data breach regulations, with 65% of New Zealand and Australian insurers anticipating this evolving challenge. This concern extends to the adoption of consumer protection laws, a hurdle expected by 53% of those based in New Zealand and Australia. These laws are getting stricter, requiring insurers to adjust their strategies to abide by the rules.
In response to these challenges, Steven Walsh, Chief Client Officer, Gallagher Bassett New Zealand, emphasises the critical role of leveraging external expertise to effectively navigate the evolving regulatory landscape:
“By leveraging external knowledge, insurers can navigate the complexities of customer-focused regulations. This approach facilitates compliance and underscores their commitment to a forward-thinking strategy.”
In New Zealand and Australia, 53% of insurers plan to hire compliance consultants or claims and risk management experts to enhance and maintain compliance measures.
“Collaborating with a claims and risk management provider can help streamline claims processes and foster a proactive approach to ongoing adherence to changing regulations,” said Steven.
Moreover, regulatory reporting and documentation management pose a significant challenge. 43% of insurers are expecting this challenge, which is pushing them to re-evaluate their reporting mechanisms. Embracing robust cybersecurity measures, reinforcing consumer protection laws, and optimising reporting processes will ensure adherence to regulatory standards.
As insurers grapple with data privacy and cybersecurity concerns – with 83% of New Zealand and Australian insurers ranking it as their primary concern – the industry must stay informed and adaptable to ongoing changes.
“In this current landscape, it is vital insurers have proper and robust plans of action in place to ensure they can navigate fast-paced changes effectively,” said Steven. “The old saying that you are only as strong as your weakest link requires that insurers must be as demanding of their supply chain, which is often vested with personal information, as they are of their own internal standards.”
By tapping into external expertise, insurers can strengthen their compliance efforts, enhance reporting processes, and position themselves to adjust and grow in an era of unprecedented change.
About Gallagher Bassett:
Gallagher Bassett (GB) is New Zealand’s leading provider of claims and risk management solutions for insurance carriers. GB is committed to providing solutions that reduce risk, improve efficiency, and deliver superior outcomes. https://www.gallagherbassett.co.nz/
