Compliance & Market Conduct Exchange Highlighted Risks for Insurers to Watch, Shifting Regulatory Environments

Atlanta, November 15, 2004 – The Compliance & Market Conduct Exchange, which was held November 7-9, 2004 in Washington, D.C. exposed risks that will affect the insurance industry and provided a framework for companies to consider their business practices.  The speaker roster consisted of representatives from NASD, NAIC, SEC and ACLI, as well as compliance executives from many leading financial services companies.  

Stuart Sweet, president of The Capitol Analysts Network reported that life insurers will face risk as tax reform becomes law, which is expected to occur within two years. Every tax reform proposal being circulated by the GOP will diminish the incentive for consumers to buy variable life and other whole life products. 

James S. Shorris, Esq., senior vice president and deputy of the enforcement department of the NASD reminded participants that the NASD is charged by the SEC, Congress and FinCEN to enforce the provisions of the PATRIOT Act.  He advised that insurers need to err on the side of disclosure when it comes to filing Suspicious Activity Reports. Also, Shorris discussed the overall change in the regulatory environment and stated, "We cannot focus on when things will ‘get back to normal.’ Insurers need to get used to this environment because they will be operating this way indefinitely.”

John F. Barrett, chairman, president and chief executive officer of Western & Southern Financial Group also shared his perspectives.  Barrett felt that strong compliance programs need to be integrated into a company’s overall business plan.  “Companies with a good compliance focus can move more quickly into new markets without constantly looking over their shoulder. Good compliance is good business,” said Barrett.

Attendees of the Compliance & Market Conduct Exchange were able to choose sessions on a variety of topics including suitability, replacements, compliance monitoring technology and anti-money laundering.  The annual conference is hosted by LOMA and LIMRA, and will be held again in Miami Beach, Florida, November 13-15, 2005.  For more information, visit www.loma.org/marketconduct.asp or call 770-984-6453.  

###