Have you ever associated outsourcing compliance with a trusted broker? If you work in a regulated industry, you understand the importance of compliance.
Serious businesses employ a CFO to ensure financial compliance. Likewise, professional insurance brokers employ compliance experts. That is because insurance law, like the finance law, falls under strict regulation.
Unfortunately, many insurance businesses try to address compliance through their own staff. However, that takes them away from other important duties. A wise insurance broker outsources compliance duties. Learn the benefits of an insurance brokerage that outsources its compliance.
COMPLIANCE REQUIRES A SPECIALIST
Insurance comes with complex regulations. Of course, insurance regulatory law governs the insurance industry.
Most insurance law comes from state legislatures. But, federal law, court decisions, and administrative judgments also play an important role.
National Association of Insurance Commissioners (NAIC) points to three factors that make insurance law so complex:
Insurance contracts are complex.
Insurance consumers may struggle to compare pricing and coverage information.
Insurance contracts are contracts of adhesion
Because of the regulatory complexity of insurance law, brokers need compliance specialists. A compliance specialist focuses on the legalities of business documents within a jurisdiction.
Most businesses outsource attorneys to review and sign off on legal documents, and outsourcing compliance works the same way. Just like lawyers, compliance experts work on behalf of businesses. They may work on individual projects or ongoing retainer agreements.
A compliance business focused only on regulatory affairs and compliance makes sense. They focus on one of the most important aspects of business: legal compliance.
Just as a CFO follows the news on fiscal affairs, a compliance professional follows insurance law. And, he or she has studied insurance law to best serve clients.
FOCUS ON COMPLIANCE
Insurance law requires focus. Only a fully focused compliance agent can ensure the effectiveness of a document. Outsourcing compliance makes for a trusted broker because it means focus.
It is no coincidence that the word, “business,” looks a lot like “busyness.” An outsourced compliant agent can avoid the busyness of a brokerage house. He or she can focus only on compliance, without distractions.
When brokerages handle compliance themselves, their staff can get distracted. Outsourcing ensures that each document receives the full attention of a qualified reviewer.
BROKER FOCUS ON BUSINESS
Outsourcing not only ensures quality document compliance. It helps the brokerage focus on business as usual. That means that clients and customers receive the full attention of brokerage staff.
Brokers that, to the contrary, attempt their own compliance duties find themselves overwhelmed. So, they may not provide the full attention needed to attend your HR staff and other employees.
OBJECTIVITY
Complying to insurance law requires full objectivity. By outsourcing compliance, an insurance broker helps ensure objective development and review of policies and other documents.
Internally reviewed documents, in any business, can carry subjective errors. Document authors get attached to words and phrases, and they can find it difficult to edit them out.
An external compliance agent will have no attachment to phrasing. With an open mind, he or she can review without bias or prejudice.
Office politics also complicate document review in a brokerage that handles compliance internally. Underling staff, for example, may hesitate to call out the boss on an inappropriate edit.
Outsourced document reviewers, however, play by the rules without worry. That is their job.
OUTSOURCING COMPLIANCE AS A TRUSTED BROKER
At Zupnick & Associates, we outsource our compliance duties. That allows us to focus on taking care of our clients while a compliance expert focuses on legalities.
Outsourcing compliance makes us a trusted broker because we work with only the best compliance agents. So, we can serve you better.
Serious businesses employ a CFO to ensure financial compliance. Likewise, professional insurance brokers employ compliance experts. That is because insurance law, like the finance law, falls under strict regulation.
Unfortunately, many insurance businesses try to address compliance through their own staff. However, that takes them away from other important duties. A wise insurance broker outsources compliance duties. Learn the benefits of an insurance brokerage that outsources its compliance.
COMPLIANCE REQUIRES A SPECIALIST
Insurance comes with complex regulations. Of course, insurance regulatory law governs the insurance industry.
Most insurance law comes from state legislatures. But, federal law, court decisions, and administrative judgments also play an important role.
National Association of Insurance Commissioners (NAIC) points to three factors that make insurance law so complex:
Insurance contracts are complex.
Insurance consumers may struggle to compare pricing and coverage information.
Insurance contracts are contracts of adhesion
Because of the regulatory complexity of insurance law, brokers need compliance specialists. A compliance specialist focuses on the legalities of business documents within a jurisdiction.
Most businesses outsource attorneys to review and sign off on legal documents, and outsourcing compliance works the same way. Just like lawyers, compliance experts work on behalf of businesses. They may work on individual projects or ongoing retainer agreements.
A compliance business focused only on regulatory affairs and compliance makes sense. They focus on one of the most important aspects of business: legal compliance.
Just as a CFO follows the news on fiscal affairs, a compliance professional follows insurance law. And, he or she has studied insurance law to best serve clients.
FOCUS ON COMPLIANCE
Insurance law requires focus. Only a fully focused compliance agent can ensure the effectiveness of a document. Outsourcing compliance makes for a trusted broker because it means focus.
It is no coincidence that the word, “business,” looks a lot like “busyness.” An outsourced compliant agent can avoid the busyness of a brokerage house. He or she can focus only on compliance, without distractions.
When brokerages handle compliance themselves, their staff can get distracted. Outsourcing ensures that each document receives the full attention of a qualified reviewer.
BROKER FOCUS ON BUSINESS
Outsourcing not only ensures quality document compliance. It helps the brokerage focus on business as usual. That means that clients and customers receive the full attention of brokerage staff.
Brokers that, to the contrary, attempt their own compliance duties find themselves overwhelmed. So, they may not provide the full attention needed to attend your HR staff and other employees.
OBJECTIVITY
Complying to insurance law requires full objectivity. By outsourcing compliance, an insurance broker helps ensure objective development and review of policies and other documents.
Internally reviewed documents, in any business, can carry subjective errors. Document authors get attached to words and phrases, and they can find it difficult to edit them out.
An external compliance agent will have no attachment to phrasing. With an open mind, he or she can review without bias or prejudice.
Office politics also complicate document review in a brokerage that handles compliance internally. Underling staff, for example, may hesitate to call out the boss on an inappropriate edit.
Outsourced document reviewers, however, play by the rules without worry. That is their job.
OUTSOURCING COMPLIANCE AS A TRUSTED BROKER
At Zupnick & Associates, we outsource our compliance duties. That allows us to focus on taking care of our clients while a compliance expert focuses on legalities.
Outsourcing compliance makes us a trusted broker because we work with only the best compliance agents. So, we can serve you better.
Why Outsourcing Compliance Makes Us A Trusted Broker
Anonymous
Author:
