Compliance is a critical function for MGAs, AGAs and insurance advisors. However, maintaining compliance can be cumbersome and time consuming in an environment of increasing regulatory scrutiny.
This is turn reduces the efficiency of your operation and leaves you with less time to focus on building your business. You can also experience lower profitability from running an inefficient operation.
But it can get worse. Failing to maintain a compliant operation can result in regulatory action, which typically ranges from warning letters to suspension or loss of license.
To provide some perspective on compliance from a regulatory standpoint, in a November 2020 Press Release by the Financial Services Regulatory Authority of Ontario (FSRA).
The regulator stressed the obligation of insurers to oversee their agents, noting that they “must take appropriate action if an agent does not meet FSRA’s conduct and suitability requirements; and cautioned that insurers must exercise due diligence “when delegating functions to managing general agencies, such as agent screening and oversight.”
While MGAs, AGAs and insurance advisors strive to be compliant, the task is not only fraught with risks but is inefficient if the compliance process is not automated.
There are several benefits to using technology that automates the compliance process, especially software that is powered by Artificial Intelligence. Here are some of the key benefits:
At the end of the day, technology can reduce your compliance risk as well as help you run a more efficient and profitable operation.
BlueMind is a smart digital office that empowers you to take control of your business. It uses Artificial Intelligence to automate the compliance process, enabling you to meet your regulatory obligations. For more information about BlueMind, book a demo below.