The pandemic threw a wrench into 2020, and businesses the world over have had to make big changes to adapt. Some industries have fared better than others, with some businesses switching up their product offering or business model to stay afloat, while others tried to figure out how to send the bulk of their workforce home to work remotely.
Related: IRS Temporarily Waives Rule for Retirement Plan Changes
In the financial services industry, regulators eased certain restrictions to make it easier for advisors to support their clients. Now, the Insured Retirement Institute is calling for some of those changes to be made permanent.
In a Nov. 4 letter to the National Association of Insurance Commissioners (NAIC) Innovation and Technology Task Force, IRI said it and its members reviewed over 200 state directives passed since the pandemic started and found them to be, generally, “timely and appropriate,” although implemented inconsistently.
“Looking ahead, we respectfully urge the states to collaborate through the NAIC to establish uniform approaches for any regulatory relief or accommodations to be adopted on a permanent basis to ensure consistent consumer treatment and easier administration for insurers,” Jason Berkowitz, IRI chief legal and regulatory affairs officer, wrote in the letter.
Specifically, those permanent changes should include:
Remote exams. States had already started shifting toward offering remote testing capabilities for professional licensing, IRI noted, but when the pandemic forced more of them on board, companies saw it as “opportunity to hire and retain staff and keep up with customer service.”
E-signature and e-delivery. IRI noted that electronic signing and delivering of important documents has had mixed support over the years, until the pandemic forced firms to adopt it more widely. “This is a significant technology application that should continue as a standard practice to meet customer needs and modernize business operations.”
Electronic notary. IRI said that technology has allowed firms to use remote notarization securely and effectively during the pandemic.
IRI stressed the long-term impact the pandemic will have on the industry.
“As we enter nine months of conducting business during a pandemic, many of the experiences of regulators, industry and consumers are forever changed,” Berkowitz said. “These changes have pushed the industry to modernize how we do business and how we engage with consumers. Ultimately, we believe regulators, carriers, producers, and consumers will all reap the benefits of this evolution.”
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Danielle Andrus works as an editor for The Financial Planning Association® (FPA®). Over the past 15 years, she has worked in various capacities, including writing and editing. Andrus has worked for several notable publications and outlets and spent more than seven years as the executive managing editor at ALM Media, publisher of Investment Advisor magazine and ThinkAdvisor.com. Before that, she was online editor for Summit Professional Networks, where she oversaw newsletter development for four magazines, including Benefits Selling, Senior Market Advisor, Boomer Market Advisor, and Bank Advisor.
