Compliance Risk
Compliance risk is a risk that the Company’s actions or inactions might result in potential regulatory interventions or regulatory actions, which could adversely affect the Company’s reputation. This is one of the most important risks in the insurance sector. Certificate of insurance compliance is the work a risk manager or compliance admin does to collect, verify and maintain the certificates of insurance provided to that Company by its third parties.
With even the most basic insurance-related regulations, a wholesale broker’s needs the special skills of a compliance officer, whose job it is to make sure the company adheres to the requirements of any related regulations, standards, laws, and policies. The risk and compliance functions are expected not only to go on protecting broker’s from downside risks, but also to shift toward providing them with strategic advice to support growth (for instance, new business) and change (such as company-wide cost and tech transformations).
Synapse provides our brokers and insureds:
Surplus line tax filings – individual and state filings.
Maintaining all licensing required to do business.
Broker contracts/producer agreements/carrier contracts.
Cyber security as required by NYS, showing due diligence that our business partners are compliant.
Research on laws, rules, and regulations, and ensuring compliance.
Provide quality assurance and quality checks of all policy documents.
Ensure diligent effort is met when required.
Routine state audits.
Surplus Lines Support
Surplus lines insurance is a special type of insurance that covers unique risks. It fills a gap in the standard market by covering things that most companies can not or will not insure. People generally seek insurance from a surplus lines carrier when the risk is unusual and the insurance companies authorized in the state (“admitted carriers”) are unable or unwilling to cover that risk.
Surplus lines insurance is a type of property and casualty insurance. Surplus lines insurance is not subject to the same regulation as standard insurance, but still must adhere to all state regulations.
