A proactive approach to working with regulators | PropertyCasualty360

The relationship between insurers and regulators has always been challenging.

This is true for any number of reasons, some of which are understandable given the nature of the roles that regulators perform, and the sheer number of requirements across the U.S. For instance, an approach to policy pricing that’s approved by regulators in one state can be identified as problematic in another.

New York and Washington are generally recognized as being among the most stringent regulators. In fact, the complex regulatory environment that helped lead to the demise of Google Compare was, in part, due to state-by-state variations and corresponding hurdles.

On the bright side, the friction between regulators and insurance companies can be reduced. I recently had the opportunity to ask a room full of insurance leaders how many of them had programs in place to collaborate with or educate regulators. The lack of response was telling; there is considerable room for improvement.

The industry-wide momentum surrounding InsureTech places prominence on increasing speed-to-market for new products, as leading insurers are eager to apply new technologies to improve the customer experience. They are also implementing predictive analytics to better target their offerings and improve underwriting profits. This is causing an industry wide challenge, as the first-mover advantage can often get held up with regulators who don’t have enough information to streamline an approval. Case in point: the thorny debate on price optimization.

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A proactive approach to working with regulators | PropertyCasualty360.