Gatsby & White: No Defying the Need to Comply
Ina Kroi, Chief Legal and Compliance Officer at Gatsby & White, says changes in the geopolitical environment and technology are reinforcing the imperative to establish the highest standards of compliance in insurance. But while compliance must meet the new expectations, she emphasizes the drive for a true value proposition beyond regulatory issues.
What trends are impacting the regulatory requirements in the world of life insurance?
Both the pandemic and the war in Ukraine have reinforced the need for regulatory vigilance. The need to supervise anti-money laundering and counter-terrorism financing has grown. We must confront the crimes of general fraud and tax fraud as well as the sanctions being imposed on people and entities because of the war. Regulatory compliance is focused on enhancing the existing legal framework with the Insurance Distribution Directive in ways that improve consumer protection. This embraces technological advances including the digitalization of distribution channels to ensure that the right insurance products are distributed to customers through the correct application of product oversight and governance requirements.
“Both the Covid pandemic and the war in Ukraine have reinforced the need for regulatory vigilance”, Ina Kroi
How do Gatsby and White position themselves in anticipation of developing trends?
We must take into account the most recent legislation that is in the process of being implemented. The Sustainable Finance Disclosure Regulation (SFDR) aims to improve transparency in the market for sustainable investment products. This requires mandatory publication by market participants of environmental, social, and governance (“ESG”) information on their websites and in the pre-contractual disclosures. Simultaneously we need to ensure that our internal policies are updated with the legal requirements and market needs by using a standardized, group-wide approach. The internal and external training we provide for our staff and distributors aims to raise awareness and develop compliance values that are properly implemented through solid internal governance and control systems.
How are Gatsby and White’s clients’ or partners’ needs evolving?
Clients’ and partners’ needs are evolving by adaption to the increased digitalization arising during the pandemic. This requires greater efforts to protect confidentiality. It requires more internal measures to be implemented and increased IT security to protect the information that is being provided digitality. We have invested in an enhanced CRM system and worked diligently on amending and rewriting our internal policies and procedures in line with the legislation to empower our clients’ and meet the market’s needs. Also we have reviewed and remediated a significant part of our existing clients’ portfolio and we have moved towards the digitalization of our services, creating conditions where we and our clients aim for a true value proposition beyond regulatory issues.