Compliance and regulatory obligations can be a cause for concern for insurers, and in 2024, insurers are gearing up for challenges in this space concerning data privacy and security compliance. Our latest global insurance industry whitepaper, The Carrier Perspective: 2024 Claims Insights, explores the expert solutions for tackling compliance and regulatory challenges, based on a survey of 150 businesses across North America, the United Kingdom, Australia and New Zealand.
Data privacy and security is the primary compliance concern for insurers in 2024. Our whitepaper research revealed that 75% of respondents globally nominate this as their foremost compliance challenge in 2024. Not surprisingly, the ever-evolving regulatory landscape has 68% of insurers in Australia saying that staying abreast of compliance and regulatory changes is their second highest priority in the area (compared to 65% globally).
Other compliance concerns include:
- Cybersecurity and data breach regulations – 65% of Australian insurers (63% global)
- The adoption of consumer protection laws – 53% of Australian insurers (47% global)
- Regulatory reporting and documentation management – 48% of Australian insurers (43% global)
The value of external expertise
Given such growing concerns, it is no surprise that more insurers are looking for support navigating the complexities of compliance and regulatory requirements. Our whitepaper revealed that more than 60% of Australian insurers are planning to leverage external expertise to ensure they remain compliant amid ever-changing customer-focused regulations. Conversely, only 5% of businesses intend to maintain internal compliance teams. Collaborating with a claims and risk management provider can help streamline claims processes and foster a proactive approach to maintaining compliance with teams dedicated to this task.
Cybersecurity as a priority
When collaborating with an external compliance partner, there are few bigger issues to consider than data privacy and cybersecurity. As an insurer, it is one thing to know your data is encrypted or that you have a strategy to address a cyber event. It is another to have total confidence that your compliance consultant has a similar ironclad commitment to protecting the sanctity of both your information and that of your clients.
Seeking support from outside specialists is a proven way to strengthen one’s compliance strategy but insurers have every right to demand the highest standards when entrusting them with personal information. It is vital to ensure compliance partners have the right technology, people and processes to avoid the kind of data and cybersecurity breaches that can create a compliance challenge.
At Gallagher Bassett, we understand that choosing the right partner is crucial. That’s why we built our Carrier Practice model in collaboration with insurers, ensuring we are focused entirely on their unique goals and objectives and delivering unparalleled support and technology to safeguard their interests.
Contact us to learn how Gallagher Bassett can support you.
