A Compliance Office is required to overlook operations concerning various industries which could include, though not limited to, Banking & Finance, Healthcare, and Insurance. A compliance officer is responsible for keeping a check on the company for transparency and to comply with rules and regulations. This applies to national as well as international regulations pertaining to the industry. It is essential for a Compliance officer to advise the company and help them work in accordance with the law to avoid lawsuits. The role also includes helping the company gain a good reputation and managing risk.
The insurance industry underwent numerous changes where the regulator gained a stronghold over insurance companies. This led to the creation of strict rules and regulations. And to remain in the race, it is of utmost importance that an insurance company complies with the regulator pre and post acquiring a license for providing insurance.
Job Description of a Compliance Officer
Considering the past 25 years of insurance, the role of a Compliance office is flourishing. This role is not merely advisory in nature with a “check-the-box” approach. Taking parts in internal audits, reviews and presenting an opinion has become crucial. The exact role can be bifurcated into the following sections:
- Managing Regulatory Bodies and external Lawyers
- Managing Legal and Compliance function
- Providing commercial legal advice
- Creating awareness with respect to anti-corruption and anti-bribery framework
- Implementing Risk Management Strategy and conduct regular Reviews
- Evaluating business activities to assess risk
- Efficiency in providing solutions for compliance violation or crises
An Ideal Compliance Officer
Communicating compliance-related issues across the employee chain is a skill every compliance officer must possess flawlessly. Advising the business owners on implementing best practices while maintaining ethics in a smooth manner is necessary.
As a layman, the business owner may lack the knowledge of understanding legal parlance or deciphering guidelines. Here, the Compliance officer should step in proactively and strategize a way to deliver these in the best possible manner.
Apart from flawless communication skills, a Compliance officer should possess the following qualities:
- Intelligence – The regulator poses ever-changing challenges, which need to be complied with continuously. The Compliance officer should make use of his/her intelligence to simplify newest challenges posed by the regulator to the company and convey the best way to adhere to the rules.
- Ethics – An ethical compliance officer will always be beneficial to a company. Due to this, he/she will always work with the best interests of the company at heart.
- Diligence – As mentioned earlier, complying with ever-changing rules is important. No matter how complicated situations get, solving them with the best outcome, is expected.
The qualification levels required to be a Compliance Officer depend on the company seeking compliance. The generally preferred qualification is at least a Bachelor’s degree in Business Administration, Corporate Law, Economics, Finance or Operations as per candidate’s interest. A Master’s degree in these areas is also a plus for this job.
The Bottom Line
Insurance providers need to work in association with entities from various cultures. This ensures smooth functioning of the company and they can provide enhanced services to their customers. A compliance officer must be in sync with company’s goals and culture. He/She is the mediator between the regulator and the insurance company, the importance of which does not need to be emphasized upon more.
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