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.