As more regulatory oversight of the insurance industry is put into play, the chief compliance officer (CCO) will become increasingly valuable in helping to inform and shape the business strategy and direction. CCOs who are leading the way in establishing and running a more mature compliance function have moved beyond reporting compliance failures and post-event improvements. They now support the CEO and board in decision making with concrete, reliable information.

To sit with the board and have meaningful dialogue, the CCO must know the compliance risks that pose the greatest threat to the insurer's financial well-being today and into the future, as well as reputational risks arising from actions, or lack of actions, the insurer has undertaken.  

EY's recent survey of insurance CCOs shows that the compliance function is indeed evolving from reactive fixer to proactive risk advisor. These CCOs are all at the head of an independent, central function that tracks key compliance events, such as market conduct exams, regulatory inquiries, and fines and sanctions. Those with more advanced functions have at least some interactions with the board or audit committee. And several CCOs at leading insurers now meet regularly with one or both of those groups, joining the table at senior management strategy and planning discussions to help guide decision making.