August 10, 2021 – Locke Lord LLP and Aite-Novarica Group examine best interest regulations in the life/annuity/benefits space placing additional requirements on broker-dealer compensation systems, regulatory reporting, and real-time monitoring; AM Best’s proposed Delegated Underwriting Authority Enterprise (DUAE) rating, that will highlight deficiencies in DUAEs’ technology ecosystems; and the long-term effects of the pandemic on the insurance industry, covering product features in areas like employment practices liability insurance (EPLI), business interruption, and voluntary benefits.
Best interest regulations in the life/annuity/benefits (L/A/B) space will place additional requirements on broker-dealer compensation systems, regulatory reporting, and real-time monitoring. Carriers are responding by integrating best-of-breed packages using APIs and/or replacing legacy systems.
Delegated Underwriting Authority Enterprises (DUAEs, e.g., MGAs, MGUs, and program underwriters) often have technology needs similar to carriers. These types of firms frequently have immature technology ecosystems, which AM Best’s proposed DUAE rating will highlight.
The pandemic will have long-term effects on the insurance industry, covering product features in areas like employment practices liability insurance (EPLI), business interruption, and voluntary benefits. The continued and expanded use of digital technologies, the related growth of IT security concerns, and the increasing and dynamic nature of regulations are all placing additional demands on IT capabilities.
About the Author
Mitch Wein
Mitch Wein is an Executive Principal in the Insurance Practice at Datos Insights. He has expertise in international IT leadership and transformation as well as technology strategy for banking, insurance (life, annuities, personal, commercial, specialty), and wealth management. Prior to joining Datos Insights, Mitch served in senior technology management positions at numerous financial institutions. At Bankers Trust (now Deutsche Bank), he automated...
Other Authors
Datos Insights
We are the advisor of choice to the banking, insurance, securities, and retail technology industries–both the financial institutions and the technology providers who serve them. The Datos Insights mission is to help our clients make better technology decisions so they can protect and grow their customers’ assets.