Insurers' concern and attention to compliance and risk management issues dipped slightly since the fourth quarter of 2013 but remains high, new research shows.
Wolters Kluwer Financial Services unveils this finding in "Regulatory & Risk Management Indicator, U.S. Insurance Industry." The March 2014 report surveyed nearly 300 insurers about their most pressing regulatory and risk management concerns in October 2013 and again January 2013. The study measures 10 critical factors that help illustrate the level of regulatory and risk management pressures faced by U.S. insurers.
The report's main regulatory and risk management indicator fell to 96 from a baseline of 100 established in the fourth quarter of 2013. The report attributes the slight decline to "cyclical" state-by-state variations in enforcement actions, combined with a modest rise in confidence among insurers respecting their capacity to manage risk enterprise-wide.
"While concern and attention to compliance and risk management issues continue to grow, the Indicator reveals insurance carriers seem to be investing in more resources to address those areas."
Compared to the fourth quarter's baseline of 100, the report shows, most indicators connected with three broad areas measured — compliance factors, regulatory environment factors and risk management factors — show declines:
