Podcast
Questions and Answers
What is a key characteristic of processes that are strong candidates for initial RPA implementation?
What is a key characteristic of processes that are strong candidates for initial RPA implementation?
- They require extensive documentation.
- They involve significant manual work with no automation.
- They have simpler processes with few exceptions. (correct)
- They are highly complex and error-prone.
Which of the following processes is most likely to benefit from robotics according to the content?
Which of the following processes is most likely to benefit from robotics according to the content?
- Processes that are completely 'straight-through processed'.
- Processes with limited automation support and substantial manual tasks. (correct)
- Processes that require constant human intervention.
- Processes with full automation and documented workflows.
What defines a process that has high predictability in the context of RPA?
What defines a process that has high predictability in the context of RPA?
- The process requires extensive documentation to function.
- The process is governed by a set of unambiguous business rules. (correct)
- The process involves a high degree of subjective decision making.
- The process can change frequently and unpredictably.
Which of the following aspects is NOT essential for processes to be suitable for RPA implementation?
Which of the following aspects is NOT essential for processes to be suitable for RPA implementation?
What added benefit does documentation provide in RPA process definition?
What added benefit does documentation provide in RPA process definition?
What is a key benefit of using RegTech in insurance compliance?
What is a key benefit of using RegTech in insurance compliance?
Which technology is identified as part of the modernizing compliance function in the insurance sector?
Which technology is identified as part of the modernizing compliance function in the insurance sector?
What challenge are insurers facing that drives the modernization of their compliance functions?
What challenge are insurers facing that drives the modernization of their compliance functions?
What role do compliance professionals play in the context of RegTech?
What role do compliance professionals play in the context of RegTech?
What is expected to significantly change the operation of insurance compliance organizations?
What is expected to significantly change the operation of insurance compliance organizations?
How are modern compliance functions adapting to regulatory changes?
How are modern compliance functions adapting to regulatory changes?
Which of the following describes a primary driver of RegTech growth in insurance?
Which of the following describes a primary driver of RegTech growth in insurance?
What is a goal of utilizing advanced analytics in insurance compliance?
What is a goal of utilizing advanced analytics in insurance compliance?
What technology can enhance audio monitoring solutions in insurance compliance?
What technology can enhance audio monitoring solutions in insurance compliance?
What is the role of RPA in regulatory reporting within the insurance sector?
What is the role of RPA in regulatory reporting within the insurance sector?
Which technology is NOT mentioned as part of potential RegTech solutions for insurance compliance?
Which technology is NOT mentioned as part of potential RegTech solutions for insurance compliance?
What can natural language processing (NLP) be used for in the context of insurance compliance?
What can natural language processing (NLP) be used for in the context of insurance compliance?
How may RPA contribute to sales surveillance in insurance compliance?
How may RPA contribute to sales surveillance in insurance compliance?
What collective benefit do RegTech solutions aim to provide for compliance organizations in insurance?
What collective benefit do RegTech solutions aim to provide for compliance organizations in insurance?
What is a significant advantage of integrating analytics and data repositories for compliance testing?
What is a significant advantage of integrating analytics and data repositories for compliance testing?
What timeframe is predicted for significant changes in insurance compliance operations due to RegTech solutions?
What timeframe is predicted for significant changes in insurance compliance operations due to RegTech solutions?
What is a primary driver for modernizing compliance?
What is a primary driver for modernizing compliance?
Which internal challenge can significantly impact compliance modernization efforts?
Which internal challenge can significantly impact compliance modernization efforts?
Which emerging technology is focused on cognition to enhance compliance?
Which emerging technology is focused on cognition to enhance compliance?
What is a consequence of ineffective governance in compliance?
What is a consequence of ineffective governance in compliance?
Which of the following describes a potential outcome of weak oversight in compliance?
Which of the following describes a potential outcome of weak oversight in compliance?
What is a significant benefit of using big data in compliance?
What is a significant benefit of using big data in compliance?
Which of the following factors may contribute to disparate risk methodologies?
Which of the following factors may contribute to disparate risk methodologies?
What challenge arises from multiple jurisdictions with conflicting laws?
What challenge arises from multiple jurisdictions with conflicting laws?
How does automation contribute to modern compliance efforts?
How does automation contribute to modern compliance efforts?
What is a result of ineffective interaction with technology in compliance?
What is a result of ineffective interaction with technology in compliance?
What was the main purpose of the Insurance Regulator Technology Adoption Survey?
What was the main purpose of the Insurance Regulator Technology Adoption Survey?
Which area do most regulators expect to increase their use of technology in the future?
Which area do most regulators expect to increase their use of technology in the future?
What is the primary current use of technology by regulators?
What is the primary current use of technology by regulators?
What factor do most regulators deem a significant driver for adopting technology?
What factor do most regulators deem a significant driver for adopting technology?
What strategy should insurers consider as they develop their RegTech plans?
What strategy should insurers consider as they develop their RegTech plans?
What aspect of insurers' operations could be a focus for improving with RegTech?
What aspect of insurers' operations could be a focus for improving with RegTech?
What challenge do insurers potentially face in utilizing RegTech solutions?
What challenge do insurers potentially face in utilizing RegTech solutions?
How do regulators view insurers' adoption of technology?
How do regulators view insurers' adoption of technology?
What role does Natural Language Generation (NLG) play in anti-money laundering (AML) efforts?
What role does Natural Language Generation (NLG) play in anti-money laundering (AML) efforts?
How can policy and procedure mapping benefit insurance companies?
How can policy and procedure mapping benefit insurance companies?
What do predictive models in advanced analytics help analyze?
What do predictive models in advanced analytics help analyze?
What percentage of respondents in Deloitte’s survey cited increased operational effectiveness as likely from RegTech solutions?
What percentage of respondents in Deloitte’s survey cited increased operational effectiveness as likely from RegTech solutions?
What technology does a state rate accuracy tool utilize to ensure compliance with charged rates?
What technology does a state rate accuracy tool utilize to ensure compliance with charged rates?
What is an example of a social intelligence platform mentioned in the context?
What is an example of a social intelligence platform mentioned in the context?
What is a critical challenge insurance companies face when planning to use technology for compliance modernization?
What is a critical challenge insurance companies face when planning to use technology for compliance modernization?
What outcome do 71 percent of respondents in the survey expect from increased efficiency linked to RegTech solutions?
What outcome do 71 percent of respondents in the survey expect from increased efficiency linked to RegTech solutions?
Flashcards
RegTech
RegTech
Regulatory Technology; tools and techniques to automate and improve insurance regulatory compliance.
Insurance Compliance
Insurance Compliance
Adhering to all rules and regulations set by government and industry bodies.
InsurTech
InsurTech
Insurance Technology; new technologies transforming insurance operations.
Robotic Process Automation (RPA)
Robotic Process Automation (RPA)
Software robots automating repetitive tasks.
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Predictive Analytics
Predictive Analytics
Using data to forecast future outcomes and trends.
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Artificial Intelligence (AI)
Artificial Intelligence (AI)
Computer systems mimicking human intelligence.
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Business Value of Compliance
Business Value of Compliance
Making regulatory compliance create value for a company’s operations.
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Insurance Industry Transformation
Insurance Industry Transformation
The process of changing the insurance industry using new technologies.
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Modern Compliance Drivers
Modern Compliance Drivers
Forces pushing organizations to improve their compliance practices.
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RegTech
RegTech
Regulatory technology that enhances compliance using tech.
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Cognitive Compliance
Cognitive Compliance
Automated compliance processes using AI for smarter control.
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Risk Sensing
Risk Sensing
Finding potential risks in compliance processes early.
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GRC
GRC
Governance, Risk, and Compliance systems / procedures.
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Executive Buy-in
Executive Buy-in
Clear support and direction from senior managers for compliance.
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Fragmented Compliance
Fragmented Compliance
Compliance practices divided across different teams or departments.
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Regulatory Pressures
Regulatory Pressures
External factors, like tougher regulations and checks.
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Compliance Strategic Vision
Compliance Strategic Vision
A clear direction and plan for fulfilling regulatory obligations.
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Multiple Jurisdictions
Multiple Jurisdictions
Organizations operating in several locations or countries with differing regulations.
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Limited Exception processes
Limited Exception processes
Processes with few exceptions in delivery; strong candidates for initial RPA implementation.
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Significant manual work
Significant manual work
Processes with substantial manual work are often good candidates for automation, despite not needing complete automation.
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High predictability
High predictability
Processes defined by unambiguous business rules are best candidates for automation.
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Reporting Unit
Reporting Unit
A specified unit or department in an organization responsible for reporting specific information.
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Materials Compliance
Materials Compliance
Adherence to rules and regulations regarding materials, products and processes in delivering services.
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Insurance Regulator Technology Adoption
Insurance Regulator Technology Adoption
Survey measuring how insurance regulators are adopting technology to manage and regulate the insurance industry.
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Regulator Technology Use
Regulator Technology Use
Current technology use by insurance regulators mostly for solvency monitoring (insurer financials).
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Future Regulator Technology Use
Future Regulator Technology Use
Increased use of technology by insurance regulators in market conduct (non-compliance, data manipulation), and consumer education.
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Insurer Technology Use
Insurer Technology Use
Insurers use of technology to improve processes, integrate systems, and adapt to changing regulatory demands.
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Regulator Motivation
Regulator Motivation
Regulators' use of technology partly motivated by insurers' use of technology.
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Automation of Processes
Automation of Processes
77% of surveyed regulators state that automating manual processes.
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Legacy System Integration
Legacy System Integration
69% of regulators surveyed stated that replacing and/or integrating legacy systems as a primary driver for tech adoption.
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Regulatory Demands Change
Regulatory Demands Change
58% of survey respondents stated responding to changing regulatory demands led to adopting technology.
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Audio monitoring solutions
Audio monitoring solutions
Using audio processing and analytics to get insights from audio data, like calls.
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Regulatory reporting automation
Regulatory reporting automation
Using RPA to prepare regulatory reports like annual statements.
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Sales surveillance automation
Sales surveillance automation
Using RPA to monitor sales activities and detect non-compliance.
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Regulatory extraction (NLP)
Regulatory extraction (NLP)
Using NLP to find and understand regulations.
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Compliance testing aggregation
Compliance testing aggregation
Combining RPA, analytics, and data to see overall compliance risk.
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RegTech solutions (future)
RegTech solutions (future)
New tech for insurance compliance, like predictive analytics and AI.
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Sea change in insurance compliance
Sea change in insurance compliance
Significant improvement in how insurance companies handle compliance, with new technology.
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Predictive analytics in insurance
Predictive analytics in insurance
Using data to forecast future compliance risks or issues.
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RegTech for Insurance
RegTech for Insurance
Regulatory Technology solutions in insurance, aiming to automate and improve compliance processes.
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AML Automation
AML Automation
Automating AML (Anti-Money Laundering) reports through Natural Language Generation (NLG).
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Operational Effectiveness
Operational Effectiveness
Improved efficiency and streamlined processes within insurance operations.
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Policy Mapping
Policy Mapping
Using NLP (Natural Language Processing) to link policies and procedures with regulatory needs.
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Advanced Analytics (Insurance)
Advanced Analytics (Insurance)
Using data analysis to understand and improve rates, sales ways, compliance culture, and fraud.
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GRC Solutions
GRC Solutions
Shared approach to Governance, Risk, and Compliance to improve risk portfolio management and treatments.
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Risk Forecasting
Risk Forecasting
Using social data to predict future risks using statistical analysis.
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Rate Accuracy
Rate Accuracy
Advanced analytics used to decide if rates are correct and match policy and approval.
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Insurance Regulation and Technology
- Deloitte's InFocus report examines insurance regulation and technology.
- Rapid technology advancements (InsurTech) are transforming the insurance industry, challenging insurers' compliance organizations.
- Opportunities to leverage new regulatory technology (RegTech) capabilities are also present.
- Drivers for modernizing insurance compliance come from three directions: emerging RegTech, internal cost challenges, and continual regulatory changes.
- RegTech can automate routine compliance tasks, reduce operational risks, and provide more insightful compliance risk assessments.
Top Takeaways
- Insurance RegTech solutions (within 3-5 years) are predicted to significantly change how insurance company compliance operations function.
- Sophisticated analytics, data integration, RPA, natural language generation/processing, and artificial intelligence are key elements of these solutions.
- By automating more costly human functions, RegTech allows compliance professionals to address changing regulatory demands.
- Insurance companies need to be more predictive in their compliance efforts.
- RegTech can potentially improve quality, reduce costs, and respond to regulatory changes.
Drivers for Modernizing Compliance
- Internal challenges include a lack of executive leadership buy-in, fragmented compliance change management, lack of strategic vision, and resource/staffing issues.
- Regulatory pressures include heightened standards and expectations, increased examinations and inspections, more enforcement actions and fines/penalties, new regulations, and complex/conflicting laws across multiple jurisdictions.
- Emerging technologies such as RegTech, cognitive compliance, risk sensing, and automation are significant factors.
- Big data and analytics, including unstructured, high-volume data, are crucial for risk identification and process improvement in compliance.
Insurance Regulator Technology Adoption Survey
- State insurance regulators expect increased technology use to improve market oversight and respond to the digital transformation.
- Top drivers for technology adoption by regulators include: automating manual processes, replacing legacy systems, adapting to changing regulatory demands, reducing operational costs, increasing oversight speed/quality.
How and Where to Invest
- Insurance companies should strategically assess which compliance functions are best suited for automation based on criteria such as transaction volume, system usage, error proneness and exception handling.
- Critical questions companies should ask when preparing their RegTech strategies include:
- Identifying automation candidates.
- Evaluating the effectiveness of current compliance practices.
- Determining whether the company's operating model supports an analytics-driven focus.
- Assessing internal expertise and external assistance needed.
- Developing or acquiring the necessary RegTech capabilities.
- Creating a robust business case to secure executive buy-in is essential for RegTech success.
- Keeping abreast of competing companies' RegTech strategies is also important.
RegTech Solutions
- RegTech solutions can improve compliance efficiency by automating routine tasks, enhancing data analysis capabilities and optimizing risk management processes.
- RegTech solutions can be effectively integrated with other business systems to create better operational efficiency for insurance companies and create greater efficiencies in processes.
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