A steady stream of rule changes has made the already complex tasks of regulatory communications and reporting even more challenging for variable annuity and variable life providers.

After experiencing the heavy lift required to comply with rule changes, such as the implementation of Rule 498A and Tailored Shareholder Report, it is vital to have a flexible and dynamic communication platform that can adapt to future regulatory actions. By upgrading to next-gen digital tools and platform architecture, variable annuity and variable life providers have an opportunity not only to reduce costs and risks, but to prepare their firms to more easily accommodate the inevitable next batch of new regulations.  

Pain points and bottlenecks

The problems that make regulatory communications and reporting so challenging run deep. Fragmented legacy data systems are a widespread issue for the industry since many firms house critical client data in separate internal systems. Often, these are the result of past acquisitions. Sometimes they were created by individual business areas or built for specific products. In many cases, these systems either can’t interact, or do so just barely. To complicate the matter, data stored in each system are likely to use different formats and business rules. As a result, the process of managing regulatory communications across multiple vendors and solutions, under steep compliance requirements, is becoming more challenging.

It doesn’t have to be like this. Variable insurance firms today have access to powerful new technologies that can normalize disparate data sets allowing for a hands-off and largely automated process for managing regulatory communications and reporting. To achieve this, firms now need to allocate the necessary resources and strategic focus to develop a next-gen process. Here is a quick five-step plan for taking that leap:

1. Start with the data

In 2025 there are countless reasons to have an integrated data management platform to execute and track regulatory communications. The ability to centralize client and policyholder communications data is key to leveraging the efficiency gains of automation, the increasing power of data analytics, and the seemingly limitless potential of artificial intelligence. It is also key to unlocking next-gen regulatory communications and reporting. At a minimum, variable insurance firms should look to centralize and standardize policyholder data management by integrating disparate data sources into a central communications management system with capabilities including data validation. Firms also need to build and implement custom business rules to handle various communication types and business scenarios and integrate policy holder systems into communications distribution and tracking processes.

2. Streamline distribution

There is no longer any need for internal staff to wait for every fund family to send required investor or policyholder documents, or to chase down fund providers to make sure the right documents arrive before regulatory deadlines. Today, all those logistics can be outsourced to external communication services providers, such as Broadridge. The same providers can manage print and digital distribution, freeing up time for internal staff to devote to higher-value tasks, like accelerating migration to digital and creating engaging, branded email templates to create a more positive e-delivery experience.

3. Take steps to help ensure compliance

You shouldn’t have to hold your breath every time a policyholder clicks on a link, hoping it works. Likewise, you shouldn’t have to worry that it links to the wrong document, or that it falls short on ADA requirements.

Today, firms are outsourcing product-level webhosting to external providers. These providers combine fund or variable insurance documents with fund prospectuses and supplements directly from EDGAR, creating a “golden source” of regulatory documents that can help ensure links always go to the correct and most current documents. They also monitor EDGAR continuously for updates and can trigger (with client approval) the distribution of supplements to policyholders.

4. Simplify fund billing

The bill back process can be a huge drain on time and resources. Internal staff spend far too much time determining what documents were distributed for each product, how they were delivered, and how much to invoice each fund family.

Fortunately, today there are many external solutions available that can take over this work, enabling internal teams to concentrate on higher-value activities. For example, some external vendors can help firms manage the billing process efficiently through enhanced reporting. Broadridge, for instance, provides a unique option to send these documents using an existing beneficial distribution process with costs paid directly by fund families, requiring little to no involvement from the variable product provider.

5. Operationalize communications

To reduce friction and costs in communications and reporting, variable insurance firms must take a strategic approach, leveraging the latest technology to optimize processes. Start by mapping out existing workflows, pinpointing pain points and bottlenecks, and identifying solutions to enhance efficiency and reduce risk. Most importantly, evaluate your communications platform as an integrated solution, not disparate processes for composition, distribution and webhosting. You don’t have to tackle this alone—engage with industry groups, connect with peers at other firms, and, most importantly, challenge your vendors to support your efforts in streamlining regulatory communications and reporting. The goal is a seamless, cost-effective, and adaptable platform that automates where possible, outsources when practical, and remains agile enough to accommodate future regulatory changes.

EDGAR®, EDGAR Next®, and SEC® are trademarks of the U.S. Securities and Exchange Commission. Broadridge’s products and services are not affiliated with or approved by the U.S. Securities and Exchange Commission.