ENHANCING INSURANCE INDUSTRY COMPLIANCE WITH AN AUTHORITATIVE SOURCE LIBRARY
R&C: With some insurance companies incorporating an authoritative source library (ASL) – also known as a regulatory inventory – into their governance, risk and compliance (GRC) operations, could you provide an overview of an ASL?
O’Brien: An authoritative source library (ASL) is an inventory of the laws which an insurance company is beholden to. What that means is that an insurer has its own copy of this inventory within its governance, risk and compliance (GRC) system, its own list of the laws that must be adhered to for compliance assurance. Having an ASL in a GRC system provides many advantages. As with one’s own inventory, an insurer can relate activities stored within its GRC system to citations stored within its ASL to drive greater efficiencies as part of the insurer’s compliance programme management systems.
R&C: What value can an ASL bring to an insurer’s GRC operations?
Donovan: Any given section of law has the potential for multiple connection points within an insurance company’s compliance operations. Having a central data point immediately available to map together the activities and processes that are managed in a GRC system allows for inherent connectivity – an ASL in a GRC system allows for direct links to citations in the library. Knowing how different data points related to a specific law in an insurer’s operations are linked together with the legal citation as the central object is the fundamental value. Compliance requirement citation connectivity can be the central point used to gain greater understanding of an insurer’s compliance programme. Changes to an ASL, when mapped, can be seen across all activities, processes and risks for a true impact assessment of such a change.
Jul-Sep 2022 Issue
Wolters Kluwer