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Compliance Program Development in Belgium: A Smart Approach for Life Insurers

In an effort to bring transparency and protect the rights of insured individuals, the Belgian government created SIGEDIS, a regulatory body that oversees employer-funded pensions. For life insurers, compliance with SIGEDIS can be a costly and time-consuming process. However, there are ways to approach this challenge in a smart and efficient manner.

The Problem: Multiple Pension Statements

Before SIGEDIS was established, individuals received multiple pension statements from different employers, making it difficult for them to assess their overall pension benefits. This lack of transparency led to confusion and uncertainty among insured individuals.

The Solution: SIGEDIS and the DB2P Database

In 2006, the Belgian government decided to create a supplementary pensions database (DB2P) to collect information on salaried employees, self-employed individuals, and civil servants. The DB2P became operational in 2011, with the aim of overseeing tax and social security legislation on the second pillar.

SIGEDIS Declaration Events

Insurance companies that offer second-pillar pensions need to adapt their IT applications to capture events such as:

  • Changes in group insurance
  • Employee departures
  • Employer transfers

These events trigger SIGEDIS declarations, which require insurance companies to create corresponding declarations for SIGEDIS.

A Smart Approach to Compliance

Life insurers can approach compliance with SIGEDIS by leveraging technology and process improvements. For instance, they can:

  • Automate the capture of declaration events using IT applications
  • Reduce manual errors
  • Improve data quality

In conclusion, compliance with SIGEDIS is a critical requirement for life insurers in Belgium. By adopting a smart approach to compliance, insurers can reduce costs, improve efficiency, and enhance transparency for insured individuals.

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