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75 Must-Know Compliance and Insurance Stats in 2024

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This summer’s IT outages have reminded companies how critical business insurance coverage and compliance automation can be when something goes awry.

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As Koop expands its customer assurance platform to include not only insurance but also security and compliance automation, we think it can’t hurt to shed some light on the state of these verticals with some verified stats.

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Security and Compliance Statistics

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  1. Manual Compliance Management: 60% of GRC users still manage compliance manually with spreadsheets (Coalfire Compliance Report)​.

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  1. Top Compliance Challenges: 44% of organizations cite handling compliance assessments, control testing, and implementing policy updates as top challenges (MetricStream)​​.

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  1. Policy Management Challenges: In 2023, the top policy management challenges were training employees on policies (42%) and aligning policies to changing regulations (38%) (Navex Global)​​.

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  1. Top Compliance Program Challenge: 23% of security and IT professionals said staying aware and interpreting new requirements was the top challenge (Coalfire Compliance Report)​​.

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  1. Manual Scanning for Regulatory Changes: 76% of compliance managers say they manually scan regulatory websites to track changes (MetricStream)​​​.

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  1. Standardizing Risk and Compliance Frameworks: Almost half (49%) of surveyed professionals said standardizing frameworks would reduce complexity and cost (Thomson Reuters)​ (SecureFrame)​.

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  1. Mapping Controls Across Frameworks: 62% of security and IT leaders cited mapping controls across frameworks as a method to manage compliance impact (Coalfire Compliance Report)​​.

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  1. Enhanced Evidence Mapping: 64% of large companies list enhanced evidence mapping as the top way to demonstrate compliance (Coalfire Compliance Report).

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  1. Sufficient Compliance Funding: 65% of respondents said they have sufficient funding for compliance efforts; 62% said they have sufficient staffing (Navex Global)​.

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  1. Increasing Cost of Compliance Staff: 61% of respondents expect the cost of senior compliance officers to increase due to demand for skilled staff and knowledge (Thomson Reuters)​.

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  1. Volume of Regulatory Change: The volume of regulatory change is expected to increase and is a key compliance challenge (Thomson Reuters)​.

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  1. Use of Outsourced Providers: An increase in the number of firms using outsourced providers for compliance functionality has been reported (Thomson Reuters)​.

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  1. Retention of Skilled Resources: Retaining skilled resources is essential due to the growing range of compliance subjects (Thomson Reuters)​.

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  1. Low Staff Morale as a Risk: Low staff morale is emerging as a key conduct risk in financial services firms (Thomson Reuters)​.

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  1. Cybersecurity as a Compliance Priority: Cybersecurity is identified as a prominent compliance priority due to internal security control needs (Thomson Reuters)​.

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  1. ESG Compliance Regulations: ESG compliance is becoming legally mandated across the world, with new laws like the German Supply Chain Law (LexisNexis)​.

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  1. Sanctions Compliance: Sanctions lists prevent companies from engaging with corrupt third parties, with strict enforcement actions (LexisNexis)​.

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  1. Technology Ethics Challenges: New technologies like AI pose ethical challenges, requiring careful compliance to avoid issues like data theft (LexisNexis)​.

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  1. Enhanced Due Diligence (EDD): EDD is crucial for high-risk clients and involves deeper investigations into potential clients' backgrounds (LexisNexis)​.

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  1. Importance of Anti-Corruption Risk Assessments: Regular anti-corruption risk assessments are essential for creating a culture of compliance (KPMG)​.

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  1. Inconsistency in ESG Approach: Lack of consistency in addressing ESG risks can hinder effective implementation of policies​ (KPMG)​.

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  1. Anti-Money Laundering Compliance: Compliance officers need to keep financial crime on their radars due to increased regulatory scrutiny (Thomson Reuters)​.

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  1. Regulatory Focus on Digital Assets: Compliance officers are concerned about digital assets and cryptocurrency due to regulatory focus (Thomson Reuters)​.

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  1. Increased Compliance Costs: Companies report increased compliance costs due to growing regulatory requirements (Thomson Reuters)​.

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  1. Use of Data Analytics in Compliance: The use of data analytics is gaining momentum in compliance programs (KPMG)​.

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  1. Hotline Awareness and Effectiveness: Testing hotline awareness and effectiveness is crucial for compliance programs (KPMG)​.

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  1. Staff Turnover and Budget Constraints: Compliance staff turnover and budget constraints remain challenges (Thomson Reuters).

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  1. Recruitment Challenges in Compliance: Recruitment of skilled compliance officers is challenging due to the potential for increased personal liability (Thomson Reuters)​.

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  1. Focus on Compliance Culture: Firms predict they will spend more time on culture and conduct issues in 2023 (Thomson Reuters)​.

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Business Insurance Statistics

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  1. Global Insurance Premium Income: Total global insurance premium income reached nearly EUR 5.6 trillion in 2022 (Allianz)​.

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  1. Life Insurance Segment: The life insurance segment accounted for EUR 2.6 trillion, making it the largest segment (Allianz)​.

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  1. Property and Casualty (P&C) Insurance Segment: P&C insurance amounted to EUR 1.8 trillion in premiums (Allianz)​.

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  1. Premium Growth in 2022: The global premium pool grew by EUR 259 billion, a 4.9% increase from the previous year (Allianz)​.

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  1. P&C Premium Growth: P&C premiums saw robust growth of 8.7% in 2022 (Allianz)​.

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  1. Life Insurance Growth: Life insurance growth was modest at 2.4% due to economic pressures on private savings (Allianz)​.

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  1. North America's Contribution: North America contributed over half of the global increase in P&C premiums in 2022 (Allianz)​.

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  1. Asia's Insurance Market: Asia's insurance market grew by 8.4% in 2022, surpassing Europe for the first time (Allianz)​.

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  1. Insurance Premiums in the U.S.: U.S. property and casualty insurers wrote $775.1 billion in net premiums in 2022 (III)​.

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  1. Top P&C Insurer: State Farm is the top P&C insurer in the U.S., with $93.8 billion in direct premiums written (III)​.

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  1. Increase in Insurance Penetration: Global insurance penetration is projected to rise by 5.2% over the next decade (Allianz)​.

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  1. Cost of Product Liability Insurance: The average cost of product liability insurance for small businesses is $1,146 per year (NAIC)​.

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  1. Top Life/Annuity Insurer: MetLife Inc. is the top writer of life/annuity insurance in the U.S., with $91.3 billion in direct premiums written (III)​.

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  1. Global Insurance Growth Drivers: Inflation and digitalization are among the key drivers of insurance premium growth (Allianz)​.

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  1. Challenges for Insurance Industry: The insurance industry faces challenges such as deglobalization and decarbonization (Allianz)​.

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  1. Global Protection Gap: A significant protection gap exists in both P&C and life insurance sectors ​(NAIC)​.

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  1. Insurance Market in the UK: The UK commercial insurance market was valued at £15.5 billion in 2023, up from £9.1 billion in 2021 (NAIC)​.

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  1. Employment in Insurance: The U.S. insurance industry employed approximately 2.9 million people in 2023 (III)​.

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  1. Reinsurance Use: Many insurers use reinsurance to manage risk and maintain financial stability (III)​.

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  1. Growth of InsurTech: Insurance technology companies (InsurTechs) are central to acquisition activity as carriers look to innovate (NAIC)​.

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  1. Premiums for Small Businesses: The cost of business insurance for small businesses varies widely, influenced by factors like industry and coverage needs (NAIC)​.

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  1. U.S. Auto Insurance: Nearly one-third of U.S. auto insurance customers experienced a rate increase in 2023​ (NAIC)​.

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  1. Market Share of Top Insurers: The top 25 insurance groups in the U.S. hold significant market share in terms of direct written premiums (NAIC)​.

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  1. Insurance Industry Income: Net income after taxes for the U.S. P&C insurance industry was $38.2 billion in 2022​ (III)​.

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  1. Life Insurance Decline in Western Europe: Premium income for life insurance in Western Europe declined by 2.7% in 2022​ (Allianz)​.

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  1. Investment Income: Net investment income for the U.S. P&C insurance industry was $71.3 billion in 2022 ​(III)​.

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  1. Top Insurance Writers: Progressive and Berkshire Hathaway are among the top P&C insurers in the U.S. ​(III)​.

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  1. Global Insurance Premiums: North America remains the largest market for insurance premiums worldwide (Allianz)​.

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  1. Insurance Fraud: Insurance fraud is a major concern, costing the industry billions annually ​(NAIC)​.

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  1. Cyber Insurance Growth: The demand for cyber insurance has increased significantly due to rising cyber threats (NAIC)​.

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  1. Natural Disaster Impact: Natural disasters significantly impact the P&C insurance industry, affecting premiums and claims (III)​.

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  1. Insurance Technology Investment: The insurance industry continues to invest heavily in technology to improve efficiency and customer experience (NAIC)​.

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  1. Premium Rate Increases: Insurers are raising premium rates to cope with high loss ratios and economic challenges (NAIC)​.

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  1. Global Insurance Market Size: The global insurance market is expected to continue growing, driven by emerging markets and new technologies (NAIC)​.

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  1. Insurance Regulation: Regulatory changes continue to shape the insurance industry, requiring insurers to adapt their strategies (NAIC)​.

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  1. Small Business Coverage: Small businesses need a variety of insurance coverages, including liability, property, and workers' compensation​ (NAIC)​.

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  1. Insurance Claims Processing: The use of artificial intelligence in claims processing is improving efficiency and accuracy (NAIC)​.

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  1. Insurance Penetration in India: Insurance penetration in India stood at 4.2% in 2023​ (NAIC)​.

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  1. Commercial Insurance Demand: There is increasing demand for commercial insurance due to rising business risks (NAIC)​.

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  1. Life Insurance Premium Growth: Life insurance premiums are projected to grow by 4.7% annually over the next decade (Allianz)​.

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  1. Impact of Climate Change: Climate change is driving up the cost of insurance as natural disasters become more frequent and severe (III)​.

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  1. Insurance for Emerging Risks: Insurers are developing new products to cover emerging risks such as cyber threats and pandemics (NAIC)​.

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  1. Growth in Asia's Insurance Market: Asia is expected to remain a key growth engine for the global insurance market (Allianz)​.

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  1. Insurance Industry Consolidation: The industry is seeing consolidation as larger firms acquire smaller ones to expand their market share​ (NAIC)​.

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  1. Digital Transformation in Insurance: The digital transformation of the insurance industry is enhancing customer experiences and operational efficiencies (NAIC)​.

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  1. Insurance Literacy: Increasing insurance literacy among consumers is helping them make more informed decisions about coverage (Allianz)​.

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Save on Compliance and Insurance with a Unified Platform

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Koop’s customer assurance platform helps tech companies seamlessly navigate the complexities of business insurance, regulatory compliance, and security automation in one place.

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‍We provide a comprehensive suite of insurance coverage that includes General Liability, Technology Errors & Omissions, Cyber Liability, and Management Liability coupled with the most cost-effective SOC 2 compliance certification on the market.

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‍Ready to learn more? Visit our website at https://www.koop.ai or drop us a note at hello@koop.ai.

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