Our Accenture 2015 Compliance Risk Study—a survey of compliance officers at 150 banking, insurance and capital markets firms across the Americas, Europe, and Asia-Pacific—confirms that compliance officers will have a central role to play in the future of insurance.
It cautions, however, that they must develop greater awareness of the changing ecosystem to remain relevant and retain their seat at the table. I’ll be exploring the results of this survey and its implications for insurers in my next few posts.
Let’s start by considering what the survey reveals about the within the insurance industry. The function remains highly visible, with compliance functions at 72 percent of insurance respondents reporting directly to the board or chief executive officer (CEO).
Among insurance survey respondents, 76 percent said investment in the function would increase by at least 10 percent over the next two years and none reported that they expect investment to decrease. This is not surprising, given the investments we’re seeing insurance carriers make in their compliance functions.
Know Your Customer has emerged as a key priority for current change and thus may see increased investment. This is in line with last year’s stated priorities, which concentrated upon more data-intensive disciplines and a continued focus on conduct.
Our study indicates that the importance of compliance’s role continues to grow, and, as a result, the function continues to benefit from access to senior management and from significant investment. Its “seat at the table” remains unchallenged, for now. In my next post, I’ll consider how a range of disruptive trends are shaking up the compliance function in insurance.