By: 18 September 2023
New data exposes insurance industry’s legal-marketing tensions

 New research conducted in the insurance sector sheds light on the ongoing conflicts between legal/compliance and marketing teams, revealing that the relationship is often adversarial and hampers productivity.  

The study, commissioned by software company Red Marker, surveyed 336 senior professionals across the UK, US, and Australia, working in insurance companies with over 5,000 employees. 

A striking finding from the research: Eight out of ten senior professionals (80%) see their relationship as adversarial. This ‘us vs. Them’ perception is fueled by a variety of factors, including archaic approval processes for marketing materials that are ill-suited for today’s complex regulatory environment. 

In the insurance sector, marketers consider the approval process their second-biggest challenge. 41% find it impedes their work, following audience targeting difficulty at 42%. 41% agreeing that it impedes their work, just behind the difficulty of reaching the right audience (42%). A substantial 75% of marketers believe that legal and compliance processes hinder their job, with 74% expressing frustration about the lengthy and convoluted review process. 

Legal and compliance professionals are equally critical of their marketing counterparts, with 85% believing that marketers do not fully grasp the necessity of adhering to complex compliance rules. Furthermore, 83% of them perceive that marketers are merely seeking scapegoats when their content is challenged externally. 

The study also revealed that 80% of those surveyed believe that an ideal review process should minimise human subjectivity, indicating a potential role for technology. 94% of marketing, legal, and compliance specialists agreed that an AI-based tool capable of intelligently scanning and highlighting content for compliance and brand risks would enhance the review process. 

These findings come as artificial intelligence is increasingly more widely used in the insurance industry.

Mark Wood, COO at Red Marker, highlighted the importance of bridging this gap between teams. He stated, “Being a successful insurer or broker relies on swift, effective, and compliant marketing. Compliance teams and marketers need to find better ways of working together to ensure content is produced and approved efficiently – but also in a way that reduces risk.”

View Red Marker’s full research report. 

Image: © Rido via Canva
Josie Geistfeld
Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk