Compliance Lifecycle Management (CLM) encompasses all activities an insurer must perform in order to be aware of, comply with and demonstrate compliance with all relevant regulatory changes.

CLM is a set of practices necessary to ensure a high-degree of compliance and audit readiness.

Adherence to this set of best practices will increase regulatory compliance, decrease costs associated with complying, provide a high-degree of transparency related to compliance.

1. Identify & Document – monitor for changes and intake into your business
2. Assess – determine if relevant to you
3. Translate - into business Processes, tasks, tools, etc.
4. Communicate – to all stakeholders including agents
5. Execute – perform required activities
6. Validate – ensure completion
7. Monitor – ensure continued completion (if applicable)
8. Report – to all internal & external parties

Listed below are:

• Each step associated with CLM
• Problems firms currently have associated with performing these steps
• CODE’s solution to the problems

1. Identify & Document - monitor for changes and intake into business

Today’s Problems: Multiple subscriptions to notification services allows for information discrepancy and high, unnecessary costs. These subscription services also means a flood of regulatory changes, those that are pertinent to your business and many of those that are not.

2. Assess - determine if relevant to you

Today’s Problems: Assessment requires a large amount of time from your highest paid resources. Privately performed studies have shown that firms spend an average of 93 days determining relevance. 50% of the time determined there was no relevance.

3. Translate - into Business Processes, tasks, tools, etc.

Today’s Problems: There is a lack of documentation in an organization, leading to inconsistency of who does what and how differently they translate. Sometimes, this step is made without legal consultation.

4. Communicate - all stakeholders

Today’s Problems: Communication is inconsistent and can break down when it is most critical resulting in redundancy or oversight. The lack of a central repository of regulatory data denies access to key contributors.

5. Execute - perform required activities

Today’s Problems: Ad hoc processes lead to inaccurate priorities set, multiple departments are in miscommunication and projects cannot be tracked accurately.

6. Validate - ensure completion

Today’s Problems: Validation is completed by a market conduct examiner or a class action litigator locates an oversight. By this time, it is too late to uphold a good reputation.

7. Monitor – ensure continued completion (if applicable)

Today’s Problems: Compliance is assumed. There is a lack of current performance standards, making market conduct preparation time-consuming and expensive.

8. Report - internal and external parties

Today’s Problems: Reporting is usually conducting only when required by an insured compliant, a regulation request or litigation. And it’s time-consuming when reporting is collected.