Compliance

Easier adherence at lower costs

The insurance industry is highly regulated, requiring the consistent enforcement of regulatory mandates across its core processes and multiple channels. FICO gives insurers the capability to improve adherence to regulations with less effort and lower compliance costs. This is important because with regulation increasing, profits can be squeezed by costly compliance requirements, especially in the EU as Solvency II approaches.

With FICO, you can enforce compliance down to the smallest detail. This makes it easy to automatically validate new business and renewal processes against the regulations that apply. For example, rules can generate compliant forms and interfaces, give agents real-time prompts, and alert workers' compensation plan administrators to different state requirements.

Our compliance solution also documents your decision processes and capture your audit trail automatically. Compliance improves because predictive models and business rules are inherently objective , providing regulators with clear disclosure of underwriting criteria. Because FICO captures all steps, inputs, and outputs in your decisioning strategies and processes, your audit prep work is already done.

Finally, you can generate more accurate reserve estimates, since FICO analytics look at individual claims rather than policyholder groups. This increased precision means you can refine or validate your existing loss reserve estimates and ensure that you're adequately pricing the risk. This tight relationship between planning and operations helps meet "use case" regulatory requirements.

With FICO’s compliance solution, you can:

• Flexibly adjust to varied state and market requirements.

• Automate your compliance documentation and audit tracking.
• Maintain decision transparency, as models and rules clearly show what decision was made and why.
• Formulate precise risk predictions to achieve more accurate reserving and to comply with new regulatory capital requirements like Solvency II.
• Allow compliance managers to rapidly modify regulatory rules.