Within the insurance world, the term “risk” gets thrown around daily. In fact, the industry itself is comprised of a complicated web of professionals with titles like risk manager, risk analyst and others whose job it is to financially protect people, businesses and property against loss while keeping their own “exposure” to these risks as low as possible for the best financial outcomes.
But insurers must mitigate an entirely different risk from within their own organizations that has nothing to do with health and home, but everything to do with their own management capabilities: compliance performance
Insurance compliance, much like the industry itself, is not a simple matter. Individual state requirements along with federal regulations can make following the rules feel much like trying to hit a moving, changing target, especially when your line of business is spread across multiple states. And as anyone ever included in an industry-related audit can attest to, the ability to quickly and accurately provide evidence of continued, consistent adherence to industry, state and federal standards is critical. Market conduct examinations, management of corrective action plans, vendor and third party risks and fraud, waste and abuse are just some of the compliance issues insurers must be able to immediately act on while wading through enormous amounts of procedural and financial data.
Government, risk management and compliance
In order to mitigate compliance risk involving data of this scope and proportion, insurers have turned to technology-driven government, risk management and compliance (GRC) solutions that help insurers address the myriad of compliance-related concerns in more exacting and comprehensive ways. These platforms not only allow insurers to manage developing regulatory requirements from a central source, they apply sophisticated analytics to interpret and report on every piece of digitally created or converted data related to the business. Having these kinds of controls at their fingertips, insurers have been able to turn file cabinets full of data into insight for improving efficiencies related to corporate policy, incident management, vendor management, surveys, remediation projects, and internal audits and assessments. Additionally, digitally organized and archived information is allowing insurers the luxury of being “audit ready” at all times.
By leveraging solutions that automate government, risk management and compliance (GRC) practices, insurers are able to mitigate risk by:
Preventing oversight: automated GRC platforms create transparency across the entire organization, allowing immediate and comprehensive insight for driving better business decisions.
Reducing error and creating efficiencies: automated GRC platforms allow insurers to manage all resources via intuitive applications from a centralized location.
Providing evidence: automated GRC platforms make use of the entirety of an insurers data, either digitally created or converted, to reduce audit costs and improve outcomes.
Risk is always uncertain. However, technologies like automated GRC platforms are allowing insurers to better mitigate compliance risk in more intuitive and gainful ways.
For more information about how iDatix is helping insurers leverage the latest in GRC technology, schedule a free process automation consultation.