New federal regulations related to the Dodd-Frank Act are currently being rolled out across the financial services industry, affecting not only banks but insurance companies as well. The goal of these new regulations is to increase consumer protection by increasing transparency. To accomplish this, new regulatory commissions have been created to monitor all activities that are financial in nature. These activities include insuring, guaranteeing or indemnifying against loss, harm, damage, illness, disability or death.

Title V of the Dodd-Frank Act establishes the Federal Insurance Office (FIO). While the office has no regulatory powers, it does have the authority to request information. To prepare for the changes ahead, IT departments are taking steps to update current data management systems in order to ease the burden anticipated when the FIO starts requesting information. Currently, most insurance companies have multiple legacy systems spread across many departments. This means that data may be duplicated, incorrect, and in a variety of formats.

With increased levels of transparency, insurers will need to consolidate information and report accurately to the new governing bodies. To improve data quality now, companies need to ensure that data is accurate, complete and standardized. Improving data in this way will allow insurers to communicate accurately with regulators and also to improve customer service.