As agencies expand or merge across state lines, managing compliance becomes more difficult, with risks of costly fines and reputational damage. ReSource Pro CEO Dan Epstein’s recent article in PC360 sheds light on the growing complexity of insurance agency compliance and the need to consolidate regulatory partners.
Dan emphasizes that delegating these responsibilities to a trusted third-party expert can streamline processes, reduce risks, and free up resources for revenue-generating activities.
The evolving landscape of insurance agency compliance
As agencies expand across state lines and offer new products, their compliance needs increase. Each additional function might mean a new partner or technology, resulting in vendor juggling. This adds complexity, increases risks, and consumes valuable time. The compliance environment is also constantly evolving, with more than 50 jurisdictions in the U.S. Each has unique regulations that often change. In short, compliance is not a part-time task.
Challenges of multi-jurisdiction compliance
Navigating compliance across multiple states, districts, and territories comes with numerous challenges, including:
- Designated Responsible Licensed Producer (DRLP) continuity: Changes in personnel can lead to compliance issues.
- Electronic filing systems: Complexities with systems like SLIP and OPTins create inefficiencies.
- Cybersecurity compliance: Adhering to laws like NY 23 NYCRR 500 and California’s Consumer Privacy Act requires robust data privacy efforts.
- Tracking deadlines: Missed renewals or terminations can result in fines.
- Data management: Handling data across multiple vendors increases communication breakdowns and risks.
The smarter approach: A national compliance expert
Rather than using multiple vendors, many agencies are turning to a single national compliance expert. When your tasks are in the right hands, outsourcing insurance agency compliance helps with:
- Risk reduction: A dedicated partner focuses on maintaining up-to-date compliance, reducing fines and operational risks.
- Efficiency: Experts free up agency staff to focus on clients rather than regulatory hurdles.
- Agility: A compliance partner can scale with your agency as it grows, managing regulatory complexities without overburdening your team.
- Comprehensive services: One vendor can manage licensing, surplus lines, corporate registrations, and more.
- Cost savings: Streamlined processes reduce administrative costs.
- Improved risk management: Centralized tracking and proactive resolution prevent compliance issues.
- Industry expertise: A trusted partner brings not just knowledge of the law but relationships with regulatory bodies.
For agencies growing across state lines, using a single national compliance partner is the best strategy. This approach simplifies processes, reduces costs, and minimizes risks, ensuring compliance functions seamlessly while your agency focuses on growth. Discover our expert outsourcing capabilities, including the capacity lift you need for compliance.
Read the full article to explore Dan’s insights into how a consolidated compliance strategy can help your agency thrive in a complex regulatory landscape.