Transcript Manner - Association of Insurance Compliance Professionals

Association of Insurance
Compliance Professionals
May 17, 2013
Advertising Compliance
Erin Mirza, Insurance Examiner-Senior
State of Wisconsin, Office of the Commissioner of Insurance (OCI)
Life and Health Section
Susanne Spear, Consultant, Marketing Materials Compliance
Compliance/Best Practices, Northwestern Mutual
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Introductions
• Erin Mirza
Insurance Examiner-Senior
State of Wisconsin, Office of the
Commissioner of Insurance (OCI)
• Susanne Spear
Consultant, Marketing Materials Compliance,
Compliance/Best Practices
Northwestern Mutual
For use by AICP conference attendees only. Not for use with the public.
Agenda – ‘Look at Life From Both Sides’
• Regulator Perspective
– What We Don’t Like to See
– What We Do Like to See
• Industry Perspective
– Life Company Best Practices
• Strategies and approaches
For use by AICP conference attendees only. Not for use with the public.
Regulator Perspective
What We Don’t Like to See
• Lack of oversight of agents
• Lack of Procedures
– Typically results in non-compliant practices
Section 628.40, Wis. Stat - Effect of Agent’s
Appointment on Insurer
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Regulator Perspective
What We Don’t Like to See
• When you say you
do have a social
media presence,
but yet there is no
record in your files
(tweets,
screenshots, etc.)
of your activity.
For use by AICP conference attendees only. Not for use with the public.
Regulator Perspective
What We Don’t Like to See
• Incomplete
Advertising Files
– Section Ins
2.16(3)(a)1,a, Wis.
Adm. Code (life)
– Section Ins
3.27(5)(a)1, Wis.
Adm. Code (health)
For use by AICP conference attendees only. Not for use with the public.
Regulator Perspective
What We Don’t Like to See
• When you say you
don’t have a social
media presence, but
yet we find your
Facebook page
without even ‘liking’
it or logging in…
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Regulator Perspective
What We Don’t Like to See
• Missing Form numbers
– Section Ins 2.16(30), Wis. Adm. Code (life)
– Section Ins 3.27(28), Wis. Adm. Code
(health)
For use by AICP conference attendees only. Not for use with the public.
Regulator Perspective
What We Don’t Like to See
• Manner and extent missing in files
– Manner = distribution type, i.e. print, internet,
TV, billboard, etc.
– Extent = when the advertisement will be used,
what geographical area will it be sent, etc.
• Lack of sources for statistical information
– Section Ins 2.16(16), Wis. Adm. Code
– Section Ins 3.27(20), Wis. Adm. Code
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Regulator Perspective
What We Do Like to See
• Agents understanding
insurer’s policies
• Accurate and complete
information being
provided in order to
make informed
decisions
• Consumer protection
from false or
misleading claims
For use by AICP conference attendees only. Not for use with the public.
Strategies and Approaches
• Compliance Best Practices Strategy: Protection of the
company’s reputation through business and compliance
integration
– Business partnering (product lines, field training,
marketing and communications)
– Liaison teams; Departmental Marketing Materials
Coordinator
• Marketing promotes pre-approved materials and supports
best practices
• Communications works with Compliance
• Compliance does not approve in a vacuum
– Consistent messaging, branding
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Strategies and Approaches
• Make compliance easier (not ‘compliance light’ )
– E-forms
– Marketing Portal (intranet access ‘behind the scenes
submission)
– Social Media Portal
– Access to pre-approved materials and published
policies
– Help lines in addition to sales support (marketing,
communications, compliance)
• Culture of compliance Rep to Client
– ‘I gotta show this to you’ (embarrassed)
– ‘To help ensure that you understand’ (distinguishes)
For use by AICP conference attendees only. Not for use with the public.
Strategies and Approaches
• Social Media is subject to the same regulatory and
retention requirements, privacy guidelines, and
existing company policies that govern all facets of
a rep’s business
• Social Media must not circumvent Do Not Call
• Social Media Goals Differ
– Corporate – promote the brand
– Representative – promote representative;
engage clients
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Strategies and Approaches
• Growth requires increasing the number of feet on the
street
• Current recruits grew up with technology and social media
• Policy for field use
• Required Training, Registration, use of Social Media Portal
• Approved social media sites
• Resources for ongoing questions
• Social Media team for reviews
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Strategies and Approaches
Social Media
• Clearly defined boundaries to avoid misunderstanding an ‘I
thought that it meant….’
• Definition of ‘business use’ - any business related
information beyond a simple listing
• Template and custom content
• Define usage for each approved site (static and interactive)
• Don’t refer to specific products or services by name
• Don’t refer to investment specific financial concepts
For use by AICP conference attendees only. Not for use with the public.
Strategies and Approaches
Social Media
• All recommendations/testimonials related to character as
a business professional or financial services practice
posted on sites other than LinkedIn must be removed
• LinkedIn Recommendations may be displayed after
approval (for those reps permitted)
• If you receive a complaint through social media,
immediately inform your field supervisor. Do not remove
it.
For use by AICP conference attendees only. Not for use with the public.
Strategies and Approaches
• Rep understanding
• Promotion of pre-approved
– Awareness, Accessibility, Resources
• Outreach to Field Supervisors/Field shadowing program
• Communication of policies, access to policies (ease of
access)
• Policy/process for submission, review and approval of selfcreated
– Description of material content, type, intended use, and
audience
For use by AICP conference attendees only. Not for use with the public.
Help ensure consumers are protected
from false or misleading claims
Strategies and Approaches Field Created Materials
Language/Content Guidelines
• ‘If it shows, you must disclose’ substantiate the claim
• ‘Guaranteed’ explain the limits of the guarantee
• Clarify what is not guaranteed
• Fair and balanced – ‘provides lifetime income and has no
liquidity’
• ‘lower taxes’ not permissible
• Strategy designed to manage the impact of taxes – permissible
• Peace of Mind – context
For use by AICP conference attendees only. Not for use with the public.
Strategies and Approaches
Early Intervention
• New producers who are most likely to leverage technology
and social media, are also the most likely to have limited
understanding of advertising regulations/compliance
• Nowadays, publication can escalate from local to national
with a mouse click
• Veteran producers may be aware of advertising
regulations/policies, but are more likely to be on a
learning curve relative to the social media business
applications
For use by AICP conference attendees only. Not for use with the public.
Questions?
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