InsurTech built for MGAs makes regulatory compliance easier
Compliance is critical in the insurance industry—it ensures carriers and companies follow the legal, ethical, and regulatory standards that govern the industry.
Compliance regulations help MGAs and wholesalers:
- Protect their clients’ interests
- Improve risk management efforts
- Maintain and establish best business practices
- Foster trust among stakeholders and customers
- Pivot as industry regulations shift and change
According to a recent Deloitte report, carriers, MGAs, and wholesale brokers are ramping up their embrace of automation software to improve business operations and overcome ongoing compliance challenges.
Today, MGAs, wholesalers, and brokers are taking full advantage of these automated capabilities in five key areas:
Better regulatory insurance compliance processes
Automation solutions are invaluable for designing solutions that comply with regulations and insurance laws. These systems provide a centralized platform for managing all regulatory requirements and simplifying audits and reporting processes.
Proactive compliance and risk management
Automation solutions empower proactive risk management. Built-in tools help MGAs use best practices to avoid noncompliance issues, resulting in identifying potential problems before they become violations. This proactive approach fosters a culture of compliance and forward-thinking within the organization.
Reduced human error
Automated compliance solutions minimize the risks that inevitably arise from human oversight and error. They streamline workflows, automate reminders, and ensure that critical tasks are completed on time, every time. Managing workflows using automation allows staff to focus on more strategic initiatives and concentrate on higher-value work.
Protected data and sensitive client information
Protecting clients’ data is the paramount consideration for compliance and regulatory processes. Automated solutions ensure compliance with data regulations and protections in many jurisdictions, including HIPAA, CCPA, and GDPR. These solutions include encryption, access controls, and regular security audits, delivering peace of mind to MGAs and their clients.
Anti-Money Laundering (AML) Compliance
Some insurance companies provide financial services to clients and must, therefore, comply with AML screening regulations. Today’s automated technology helps insurance companies stay compliant by identifying suspicious transactions and economic crimes. These systems can flag potentially illicit activity, allowing companies to investigate and report if necessary.
Insurance Compliance Solutions help MGAs stay on track
Using InsurTech solutions helps businesses respond quickly to complex and ever-changing regulatory demands, allows employees to focus on their client relationships, and makes them more valuable business partners and advisers to their clients.
Today’s technology provides valuable tools to help carriers and wholesalers overcome many insurance compliance challenges. However, to be successful, each business must understand its own unique compliance requirements and seek the right insurance partner to meet its individual needs.
For MGAs, wholesalers, and brokers, embracing automation is essential for streamlining operations, improving accuracy, enhancing compliance, and ultimately delivering a better experience for clients and employees. By implementing the right InsurTech solutions, MGAs can unlock significant efficiencies, reduce costs, and position themselves for continued growth and success.
Learn more about Vertafore’s focused InsurTech solutions that deliver the most comprehensive support for MGAs.