Much has been written and said about the burden of regulation on insurers but very little about how to maximise business performance in a more heavily regulated environment. This subject also touches on the broader issue of increased business complexity and how you can create competitive advantage in a highly regulated environment.
Thriving on complexity, a study conducted jointly by RPC and Gracechurch Consulting, evaluates insurance business leaders’ views on how regulation impacts on their businesses, with specific focus on the actions that business leaders are taking to ensure future competitiveness.
The majority of Insurers feel that they are operating in a more complex business environment compared to 3 years ago, mainly due to the increase of industry regulation. However despite the increased complexity, many claim that it is possible to create competitive advantage through leading the way on regulatory compliance.
"We take the regulatory responsibilities very seriously. We embrace them and we find that that gives us a competitive advantage over other companies who are being more lackadaisical about it. A lot of companies will run amok with the regulation going forward because they are not treating their regulatory responsibilities as seriously as they should, so they will be in the firing line of some of the regulators, whereas we are viewed very highly and will have more optionality and scope within the sector.”
London 100 recently published an article on the report written by RPC, 'Perceptions Matter! Making sense of regulation'