Survey Shows Insurers Lagging on Compliance Screening

Why It Matters

The compliance gap hampers insurers’ ability to onboard customers quickly and meet regulatory expectations, driving urgent investment in real‑time, automated screening technologies.

Key Takeaways

• Insurers face 75% data update delays
• 80% cite inflexible screening tools
• Manual remediation workload hits 81%
• 98% demand real-time data access
• Automation prioritized by 60% of firms

Pulse Analysis

Regulatory scrutiny on insurance compliance has intensified, pushing firms to modernise screening processes that were traditionally manual and siloed. The LSEG survey highlights that insurers are trailing the broader market, with data‑staleness and rigid tools creating bottlenecks that inflate operational costs and expose firms to sanction risk. As regulators demand faster, more accurate customer verification, insurers must reconcile legacy systems with the need for continuous, up‑to‑date risk intelligence.

Real‑time data access emerges as the single most coveted capability, with 98% of compliance professionals flagging it as essential. Coupled with automation and workflow integration, it promises to slash false‑positive rates—currently at 75%—and reduce the 81% manual remediation burden. Faster onboarding, valued by 58% of respondents, directly translates into improved customer experience and competitive advantage, especially as fintech entrants leverage agile compliance stacks. Insurers that invest in APIs, cloud‑based screening platforms, and AI‑driven risk models can expect not only regulatory alignment but also measurable efficiency gains.

The market response is already shifting. Providers that deliver seamless integration, real‑time data feeds, and precision screening are seeing heightened demand, with 26% of insurers indicating these factors as primary triggers for switching vendors. LSEG’s focus on combining speed, accuracy, and integration positions it to capture a growing slice of this niche. Over the next few years, we anticipate a consolidation toward platforms that embed compliance into the core customer journey, turning what was once a back‑office hurdle into a strategic differentiator.