Consumer protection is now high on the agenda for chief compliance officers, according to an insurance industry report by Ernst & Young.

Its global survey of chief compliance officers finds 72% say their businesses are feeling the impact of new consumer-protection regulations. Insurers are responding by developing group-wide standards to encourage consistency across their businesses.

Other strategies include strengthening approval processes for products exposed to regulatory or reputational risk, and enhancing product oversight and governance processes.

Ernst & Young questioned chief compliance officers at 20 global insurers with head offices in Europe, North America, Africa and Asia.

The report says compliance plays an important role in an insurer’s control framework, by closely engaging with the executive leadership. Reporting lines tend to reflect the location of the group compliance function and the regulatory environment in which it operates.

Respondents say they use an inventory of laws to define their risks through compliance risk assessments, and all insurers monitor key controls in the first line of defence.

Most compliance functions also screen “sanctions checks, third-party payments or other financial crime controls”. This is sometimes undertaken by dedicated teams outside of internal compliance departments.

The report says 38% of insurers have a relationship with regulatory authorities, but the level of engagement depends on legal changes and market conditions.

Many insurers report regulatory visits taking place at least monthly, and 65% have at least an annual visit.

Reporting of compliance is now undertaken at board level or by senior executives. The results of compliance activity are widely reported at both local and group levels.

Chief compliance officers expect their roles to increase in the next year as the work becomes more supportive and forward-looking.

But as compliance departments grow, most insurers are struggling to attract and retain talent.

The survey says that where no natural talent pool exists, insurers are forced to develop their own compliance resources – but they risk losing them to competitors.