Compliance & Innovation in Insurance – By Kingston Koser
Last week, the NAIC/NIPR Insurance Summit was held in Kansas City. The event brings hundreds of regulators, industry professionals, and innovators together to discuss the future of insurance regulation. One thing is for sure – with the fast pace of innovation occurring in the insurance industry, the future of insurance regulation will be much different than anything we’ve seen before. The advances in the industry are numerous and there is an increase in the use of robotic processes used throughout insurance.
The industry has embraced technology and automation by introducing Chatbots into their processes. Interactive Voice Response systems have long been used in call-centers to better direct calls to the appropriate business unit. Chatbots are different in that they are designed to provide resolution to the customers’ needs. Using natural language to interact with customers and powerful algorithms to understand what customers want, chatbots provide a much more sophisticated and enjoyable experience. As the algorithms behind the chatbots have become more sophisticated, insurers have found many more applications for them, including quoting policies and providing claims assistance. These are functions that have historically been completed by licensed individuals. The NAIC’s Producer Licensing Task Force has been tasked to develop a whitepaper related to the use of chatbots in the distribution of insurance and the regulatory supervision of this technology.
There is no doubt that technology innovation will change how regulations are managed within the industry. These innovations will affect the carriers, agents, adjusters, and even consumers. Regulators, while focusing on consumer protections, must understand that there is a cost associated with compliance. With the introduction of new technologies, there will be an abundance of new regulations that agents and carries must comply with, and as such, the cost of compliance will also be greatly affected.
This is where solutions that use robotic processes can become key tools. Having a solution to manage your professional regulatory compliance can help keep your total cost of compliance to a minimum while increasing your efficiencies. Staying on top of all the regulatory rules and changes can be a daunting task. PCRM solves this by keeping up with all the latest changes to regulatory compliance from all US States so that you are always prepared. PCRM uses automation to manage license requirements, applications, renewals and appointments, relieving the stress of these tasks from compliance staff.