Insurance regulatory compliance made easier: standardized compliance features of the AdInsure insurance platform

Party compliance: focus on financial risk management 

The party compliance set of functionalities deals with reporting on the source of the financial assets which converge into insurance. AdInsure can be used to set FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) statuses for a client and report on the flagged parties to relevant financial institutions which exchange the collected data and perform due diligence procedures. The aim of AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) controls put in place is to prevent the use of the financial system for the purpose of money laundering and terrorist financing by reporting on the declared source of the funds. Finally, clients identified as politically exposed persons (PEP) are treated as a high risk across all insurance processes. AdInsure sends system notifications to users because of their higher risk of potential involvement in bribery and corruption.

IFRS 17: accounting standards for the financial services industry

As our very own Nikola Aleksić says, IFRS17 is one of the biggest and most significant insurance accounting changes to happen in our lifetime. It is much more than a simple accounting change, and as such, requires a comprehensive approach in terms of the analysis as well as the implementation. AdInsure’s configurability was waiting for just such an opportunity to prove itself and it has proven to be more than up to the challenge. It supports relevant configurations of business events as well as high granularity of posting schemas. You can find out more about the topic in the following blog post:

IDD: assessing the needs to protect insurance clients

The primary objective of the Insurance Distribution Directive is improving customer protection through insurance needs assessment and a more customer-facing approach to consulting. The implications of the directive span through multiple AdInsure modules: the definitions of insurance products face more scrutiny, the salesforce is required to be qualified and trained and the sales process itself needs to be more transparent and understandable to the client.

AdInsure covers those requirements with the following set of functionalities:

GDPR: protecting personal data

General Data Protection Regulation is structured around six principles:

1. Requiring transparency regarding the handling and use of personal data
2. Limiting personal data processing to specified and legitimate purposes
3. Limiting personal data collection and storage to intended purposes
4. Enabling individuals to correct or request deletion of their personal data
5. Limiting the storage of personally identifiable data for only as long as necessary for its intended purpose
6. Ensuring personal data is protected using appropriate security practices

The configuration capabilities of AdInsure and Adacta professional support enable the insurers to define their process to ensure the collected personal data is kept at a minimum. Prevention is the best cure, as they say.

Since some personal data is required for any insurance-related process, AdInsure allows users to (at the lowest attribute level) set which records contain personally identifiable data. Once the personal data is collected, the customer also signs the consent that allows the insurance company to store and manage data for business purposes. Once the personal data is gathered and the system is aware of where it is kept, an audit log is used to track access to it. Every time data is viewed or modified, the system logs information about the activities related to stored data. The audit log is meant to be used by the DPO or compliance officers in cases of unauthorized data access.

Since storing and collecting personal data is permitted only during the lifetime of the related business process (for example, until an insurance policy is expired), GDPR requires businesses to define retention periods. Once the retention period for a document expires, personal data needs to be removed from the system.

Since the insurance business is built on the premise of statistical analysis of collected data, the removal and potential loss of data is a pain point for any actuary. AdInsure offers several options, ranging from data deletion and archiving to the preferred solution – data anonymization. In the scope of data anonymization, the personally identifiable parts of data are overwritten or deleted, while the statistically significant data is kept. For example, the first and last name of a person are completely irrelevant, as long as the information about their age, sex, and city of residence is preserved.

Some pain, some gain

Sure, insurance regulatory compliance efforts may seem like a costly but necessary proposition. However, compliance also brings several benefits. The 2019 Data Privacy Benchmark Study has shown that 42% of organizations agreed that privacy investments enabled greater agility and innovation, while 41% claimed they drove operational efficiency by organizing and cataloging their data. The same percentage of companies believed that they gained a competitive advantage over other organizations.

This data clearly shows that compliance initiatives are well worth it, especially if undertaken with the right IT support that streamlines the delivery of functionalities for compliance. AdInsure is the right solution for this, with full support for many global and local compliance requirements.