• Service: Advisory, Risk Consulting, Financial Risk Management, Internal Audit and Regulatory Compliance
  • Industry: Insurance
  • Type: Publication series
  • Date: 11/1/2011

Market conduct compliance and unclaimed death benefits update 

December’s On the Move focuses on an area of historically great importance for regulators – insurer market conduct. As the current economic climate keeps insurers focused on issues of finance and solvency, insurers must not lose sight of their compliance with basic market conduct standards. The article also addresses the evolving area of unclaimed death benefits.
The financial crisis has caused regulators and observers to focus on strategy, capital, governance, and risk management standards, often referred to as prudential standards. However, the pendulum of regulation has historically swung from prudential standards in times of financial crisis to market conduct issues when financial crises abate. There is a danger during times of downturn that compliance controls and processes are viewed as a cost by the business and become an area that is cut back or is lacking in investment. As a consequence, when the regulatory spotlight starts to shift from prudential standards to market conduct, market conduct failures and control breakdowns are often found to have occurred. 2012 is set to see a continued focus on Market Conduct regulation.