The market conduct examination process for insurance companies is complex, time-consuming and costly. With limited resources available to non-revenue producing functions, companies are continually seeking ways to conduct their business in a cost-effective manner that is free from examination criticisms.
A common practice to this delicate balance is to conduct a risk-based approach to one’s business. Under a risk-based model, companies identify the business practices that are of significant regulatory interest or that have resulted in significant regulatory fines and ensure that those areas of increased risk are compliant. Access to market conduct exam criticisms is a critical link for companies to identify those compliance risks, which are typically regulatory hotspots.