What can insurers learn from other sectors when it comes to major change?

New legislation in the shape of the forthcoming Fourth EU Money Laundering Directive looms large as law makers make a renewed drive to tackle illegal transactions, laundered cash and terrorist financing.

It will also heap further responsibility on business, industry and commerce to ensure they can show they have adopted best practice in due-diligence, blocking money laundering and financial crime.

As a result, it is now evident that many insurers are considering how they should best meet the demands of the latest directive, where any investment needs to go or where they may need to make senior appointments in compliance-specific role.

Some organisations – typically those within financial services – have already started scrutinising how and where they can exceed the demands of the new requirements in a bid to ease the impact of any changes in regulations.

But many insurers accept they currently lag behind banking and financial services in this area, particularly given many operational tasks including underwriting, claims management, payment and fraud checks, are fundamentally different.

Right now there’s a huge opportunity for insurers to learn from others to help lay the foundations for regulatory compliance, which should result in low or modest impacts from future regulatory changes. Elsewhere ecommerce, which is often regarded as being closely aligned to insurance, could also learn to adopt new operating procedures.

Learning from other markets is likely to be pivotal for the on-going success of any insurance business, while remaining vigilant to the subtly differing components such as how payment fraud manifests itself throughout the supply chain.