Insurance Compliance: What You Need to Know

Ensuring marketing compliance and consumer protection in today’s regulatory environment is critical for insurance companies.

In this blog post, we’ll cover the basics of insurance compliance, why it’s important, and how to mitigate compliance risk across consumer marketing channels.

Table of Contents

What is marketing compliance in the insurance industry?

Marketing compliance in the insurance industry refers to the set of rules and regulations that insurance companies must follow when promoting and selling their products and services. This includes complying with laws and regulations related to advertising, disclosure requirements, consumer protection, and other relevant areas. The goal is to ensure that insurance companies are transparent and honest in their marketing practices, and that consumers are fully informed about the products they are purchasing.

What are the insurance compliance regulations and requirements when it comes to marketing and advertising?

While the regulations and compliance requirements for insurance companies, when it comes to marketing and advertising, can vary depending on the jurisdiction and the type of insurance being sold, some common regulations and requirements include Truth in Advertising, Fair Credit Reporting Act (FCRA), Telemarketing Sales Rule (TSR), fair lending laws, and Health Insurance Portability and Accountability Act (HIPAA).

How do insurance companies adapt their marketing compliance strategies to changes in regulations and laws?

Insurance companies adapt their marketing compliance strategies to changes in regulations and laws by closely monitoring new or updated laws and regulations, updating their compliance policies and practices accordingly, training employees on the new requirements, updating advertising and marketing materials, and implementing compliance monitoring processes to ensure compliance. 

What must be included in insurance advertisements?

Insurance advertisements must include accurate and truthful information about the products or services being offered, and relevant and required disclosures, such as coverage limits, excursions, or costs.

Advertisements should not be deceptive, unfair, or misleading, and should not make exaggerated or unsubstantiated claims about the benefits of the product or service.

How do insurance companies ensure compliance with regulations such as UDAAP?

Insurance companies ensure compliance with regulations such as UDAAP (Unfair, Deceptive, or Abusive Acts or Practices) by implementing comprehensive compliance programs that include policies, procedures, and internal controls designed to prevent, detect, and correct any potential violations of the UDAAP rules. 

PerformLine: The Trusted Platform for Insurance Compliance

PerformLine’s omni-channel compliance monitoring solution was built to automate the monitoring and remediation of regulatory and brand compliance violations, on all internal and external channels including web, messaging, calls, email, documents, and social media. Our turn-key industry rulebooks are built on years of experience working with regulators and industry clients.

Speak to one of our experts today to learn more about mitigating risk and ensuring brand safety.