An insurer must adopt, implement and document an effective risk management framework that provides for management and oversight of its insurance business and adequately protects the interests of its policyholders. There are significant oversight obligations placed on insurers which must have the necessary resources and ability to comply.
The growing compliance oversight placed on the insurance industry is making it very difficult for insurance companies to comply. Insurers are required to identify, assess, communicate, manage and report on operational risks posed by intermediaries, brokers and binder holders. This onerous compliance process can be very challenging requiring ongoing assessments to: