Information technology managers are scrambling to keep up with regulators’ hunger for data.
IT experts talked about the data feeding frenzy here during a session at the ACORD LOMA Insurance Systems Forum.
Much of the discussion focused on Sarbanes-Oxley Act financial reporting requirements and federal anti-money-laundering programs.
Simply complying with SOX costs an insurer about $1 million for every $41 billion in revenue, according to Jim McIntyre, a director at Deloitte & Touche Consulting, New York.
Worse, regulators still are trying to clarify what the SOX regulations really require.
But, if IT professionals fail to ensure that the torrent of SOX reporting is accurate, that will add to the “perception that we are not in step with where the business is going,” McIntyre warned.
Another panelist, Michael Rigby, a vice president at a unit of MetLife Inc., New York, talked about the role insurance company IT managers can play in protecting the world from terrorists, drug dealers and individuals involved with the proliferation of weapons of mass destruction.
Rigby described the data warehouse MetLife has established to supply information to 2 arms of the U.S. Treasury Department, the Office of Foreign Assets Control and the Financial Crimes Enforcement Network.
OFAC enforces sanctions imposed by the federal government against countries, organizations and individuals deemed to be enemies of the United States.
FinCEN collects and analyzes reports about transactions involving large inflows of cash.
A good data warehouse “can be a key vehicle” in ensuring anti-money laundering program compliance, Rigby said.