June 2020 – Locke Lord LLP and Novarica look at new regulatory developments in response to the COVID-19 pandemic, emerging state best interest industry sales standards, and the implications of NY DFS and the NAIC Model when managing third-party service providers around data and security.

Insurers have had to adapt to substantial instability this year due to COVID-19 and recent, rapidly ongoing regulatory changes. Pandemic-related changes in working modes and interactions, along with changing and significant new risks, have had a major impact on insurers and proposed regulations.

Beyond the pandemic, emerging regulations aiming to protect consumers include best interest sales standards in annuities, data protection, and mandates for security best practices for third parties supporting insurers across lines of business. These trends will continue to evolve into the 2020s.