By Jacqui Potter, Head of Client Finance at PoloWorks

15th July 2025

Finance teams in the Insurance Industry have always carried the heavy responsibility of keeping the company on solid regulatory and financial footing. But let’s be honest: in recent years that load has grown into a veritable mountain. New accounting standards, more stringent reporting requirements, and heightened expectations around data and transparency are challenging even for the most seasoned finance professionals. The question isn’t if there will be another wave of regulatory change – it’s when and how big.

Consider what’s come our way recently. We implemented IFRS 17, overhauled Solvency II reporting templates, and are now digesting the UK’s updated consumer protection rules – all in a short span of time. Each change demands time, expertise, and robust systems to comply. Finance teams are expected to produce ever more detailed reports, faster, and with absolute accuracy. Meanwhile, regulators like the PRA and FCA aren’t just asking for data; they’re asking for evidence that we have control over our data and processes. The operational resilience agenda is a prime example – regulators want to know that if something goes wrong (a cyber-attack, a system failure), we can still carry out critical finance functions like processing payments and closing the books on time.

A major pain point underlying these demands is data. Insurance data is often siloed across policy admin systems, claims systems, finance ledgers, spreadsheets – you name it. Aggregating and reconciling that data for a regulatory return can feel like herding cats. I’ve seen finance managers work late nights not because they can’t analyse the numbers, but because they’re stuck manually fixing CSV files or hunting down an elusive data discrepancy. Poor data quality isn’t just an inconvenience; it’s a compliance risk if it leads to misreporting. Regulators have made clear that they expect timely, accurate data – and they will hold firms to account for it.

Then there’s the people aspect. We’ve touched on the talent shortage in previous articles, and it truly bites in finance. Experienced insurance accountants and analysts with the right mix of skills (think accounting and IT and regulatory knowledge) are in short supply. The competition to hire and retain them is fierce. This shortage means existing teams often operate understaffed, which is not sustainable given the workload. It also raises operational risk – fewer eyes on each reconciliation or report increases the chance something gets missed.

Facing this whirlwind of challenges, I’ve become a big proponent of building resilience through strategic partnerships and smart investments. One strategy many insurers are embracing is to leverage external experts to bolster their finance function. It’s not about handing off responsibility – it’s about bringing in reinforcements. For example, at PoloWorks we function as an extension of our clients’ finance teams, and a huge part of our value is keeping on top of regulatory changes for them. We maintain close connections with bodies like Lloyd’s and the PRA, and we’re often involved in industry pilots or working groups, so we can give early warning of what’s coming and help our clients prepare. In practice, that might mean our team ensuring a client’s reports meet a new rule well ahead of the deadline, or updating processes to align with fresh guidance.

Another area is control and security. A good outsourcing partner will actually tighten the ship in terms of governance. We know regulators demand strong controls – segregation of duties, audit trails, data protection. For instance, our team is fanatical about compliance: we have certified processes, and we use tools to detect anomalies or potential fraud in financial data. As one industry expert noted, outsourcing specialists tend to be experts in regulatory compliance and data security, often deploying advanced analytics and AI to reduce risks while strictly adhering to data privacy laws. We bring that mindset into our clients’ operations. I’ve had CFOs tell me they sleep better at night knowing that a dedicated team is watching over these details. In the end, navigating the gauntlet of regulations and data challenges comes down to preparedness and support. Insurers that invest in robust systems, cultivate agile teams, and aren’t afraid to lean on specialist partners will not only meet the hurdles – they’ll vault over them. In my view, an insurance finance function should be like a well-oiled machine: resilient to shocks, built on accurate data, and staffed (internally or externally) by people who know their craft inside out. That’s what we strive to achieve for every client we work with. And when that resilience is in place, it frees you up to focus on the bigger picture – driving your business forward, rather than worrying about the next compliance deadline.