Navigate Insurance Regulations with Confidence
Fifty state regulations. NAIC standards. Cyber requirements. Constant examinations. Newf Advisory provides the expert leadership to navigate the insurance compliance labyrinth.
Insurance Compliance Challenges
Insurance organizations face unique compliance burdens that vary by state, line of business, and regulatory jurisdiction.
Multi-State Regulatory Complexity
Operating in multiple states means navigating 50 different insurance departments, each with unique requirements for data security, breach notification, and examination preparation.
Organizations licensed in dozens of states often find it nearly impossible to track which regulations apply in each jurisdiction.
NAIC Model Law Adoption
The NAIC Insurance Data Security Model Law (#668) is being adopted state-by-state, each with variations. Compliance deadlines, requirements, and penalties differ dramatically.
States like New York, Ohio, and South Carolina have each adopted different versions of the same model law, creating a patchwork of overlapping requirements.
Regulatory Examination Readiness
State insurance examinations require instant access to policies, procedures, evidence of controls, and audit trails. Most carriers scramble for 2-3 weeks to compile documentation.
Many carriers report being unable to locate critical security policy documentation during examinations, leading to avoidable findings.
Third-Party Vendor Risk
Insurance companies depend on dozens of vendors: claims processors, policy administration systems, actuarial software, and data aggregators. Each creates compliance risk.
Insurance organizations commonly have dozens of vendors with access to policyholder data, yet lack visibility into those vendors' security postures.
Cybersecurity Program Requirements
NAIC Model Law requires formal cybersecurity programs with risk assessments, incident response plans, and annual reporting. Building and maintaining these is overwhelming.
Building a formal cybersecurity program from scratch is a common pain point, especially for organizations without dedicated compliance staff.
SOC 2 for Insurtech
Insurance companies selling to other carriers or MGAs need SOC 2 reports. Achieving SOC 2 Type II compliance requires 12+ months of evidence and continuous monitoring.
Insurtech companies increasingly report losing carrier partnerships due to the absence of SOC 2 certification, making it a competitive necessity.
How Newf Advisory Helps
Expert-led compliance strategy for carriers, MGAs, and agencies. Examination-ready from day one.
50-State Regulatory Navigation
Our advisors map NAIC Model Law variations across all your licensed states and build a unified compliance strategy that satisfies overlapping requirements efficiently.
- NAIC Model Law #668 compliance program design
- State-by-state variation analysis (NY DFS, OH, SC, etc.)
- Ongoing regulatory change monitoring across jurisdictions
State Examination Preparation
When state examiners arrive, you need policies, evidence, and audit trails ready immediately. Our advisors build the programs and documentation that pass examinations with zero findings.
- Complete examination documentation preparation
- Evidence collection program design and implementation
- Mock examination exercises with remediation guidance
Vendor Risk Management for Insurance
We assess your vendor ecosystem, design oversight programs, and ensure you can demonstrate third-party risk management to state examiners.
- Vendor inventory and contract review
- Risk scoring framework (data access + SOC 2 status)
- Annual vendor review procedures with examiner evidence
How Insurance Organizations Work with Us
Common advisory engagements where Newf Advisory helps insurance organizations build and maintain compliance programs.
Regional P&C Carrier
Challenge: Mid-sized property & casualty carrier licensed in 22 states faced state examination and couldn't produce required cybersecurity program documentation.
Advisory Approach: Newf Advisory designed a cybersecurity program aligned to NAIC Model Law, built the required documentation library, and prepared the team for examiner requests.
Outcome: Examination-ready documentation with a unified compliance framework across all licensed states.
Insurtech MGA
Challenge: Managing General Agent needed SOC 2 Type II to sell to carrier partners but had no compliance infrastructure.
Advisory Approach: Our advisors designed the SOC 2 control framework, implemented evidence collection workflows, and coordinated with the auditor throughout the Type II examination process.
Outcome: SOC 2 Type II readiness with a sustainable evidence collection program for ongoing compliance.
Independent Agency Network
Challenge: 15-location agency network needed consistent data security policies across all offices for E&O insurance renewal.
Advisory Approach: Newf Advisory developed a centralized policy library, designed training programs with completion tracking, and created E&O compliance attestation documentation.
Outcome: Consistent security posture across all locations with improved E&O insurance positioning.
Life Insurance Carrier
Challenge: Life carrier operating in NY needed to comply with 23 NYCRR 500 (DFS Cybersecurity Regulation) plus NAIC Model Law in 18 other states.
Advisory Approach: Our advisors mapped overlapping requirements across all 19 states, identified control gaps, and designed a unified framework that satisfies every jurisdiction efficiently.
Outcome: Unified compliance across NY DFS + 18 states, eliminating duplicate work through control overlap analysis.
Insurance Compliance FAQs
Common questions about insurance compliance and regulatory requirements
What is NAIC Model Law #668?
NAIC Model Law #668 (Insurance Data Security Model Law) is a comprehensive cybersecurity regulation adopted by many states. It requires insurance companies to implement cybersecurity programs, conduct annual risk assessments, maintain incident response plans, and report breaches to state insurance commissioners. Each state adopts variations of the model law with different effective dates and requirements.
How is NY DFS Cybersecurity Regulation different from NAIC Model Law?
New York's 23 NYCRR 500 (DFS Cybersecurity Regulation) is more prescriptive than NAIC Model Law #668. It requires specific technical controls like multi-factor authentication, encryption, and penetration testing. NY DFS also mandates annual certification by board or senior officer. While NAIC Model Law is principles-based, NY DFS is rules-based with specific deadlines and technical requirements.
What happens during a state insurance examination?
State Department of Insurance examinations review financial condition, market conduct, and compliance with state regulations. Examiners request documentation including cybersecurity policies, vendor contracts, incident response plans, training records, and evidence of board oversight. Examinations typically occur every 3-5 years and can result in findings, corrective action plans, or fines for deficiencies.
How long does it take to achieve SOC 2 Type II for insurtech companies?
SOC 2 Type II requires at least 6 months of continuous evidence collection after implementing required controls. Most insurtech companies spend 3-6 months designing controls, then 6-12 months collecting evidence before engaging an auditor. Total timeline ranges from 9-18 months. Working with experienced advisors can significantly accelerate this timeline through proven frameworks and implementation guidance.
Do MGAs and insurance agencies need to comply with NAIC Model Law?
Yes, in most states. NAIC Model Law #668 applies to all "licensees" including Managing General Agents (MGAs), insurance agencies, and brokers that have access to nonpublic information. Requirements may be scaled based on size and risk, but all licensees must implement appropriate cybersecurity measures and comply with breach notification obligations.
Looking for Compliance Technology?
AlignSure, our compliance operating system, automates the workflows our advisors design—integrated with Microsoft 365. Visit alignsure.com for platform details.
Ready to Simplify Insurance Compliance?
Schedule a consultation with our insurance compliance specialists. We'll map your multi-state regulatory obligations, identify gaps in your cybersecurity program, and recommend the right advisory engagement.
30-minute consultation • No obligation • Insurance compliance specialists