What was a small family business managed by its founder, has today grown into a fully$-$fledged corporate. The Company, Jones Insurance Ltd$,$ is today a shareholder$-$owned organisation with a tier of senior and junior management personnel and a complement of over $100$ staff members servicing the UK market and insuring risks in Europe.

Previously, the owner was the decision maker and ran the organisation on a one$-$man$-$show basis having a few technical members of staff who were engaged in the operations.

Today, the company has separate divisions for underwriting, claims, personal and commercial lines, and large corporate clients.

This growth and development brought increased challenges and responsibilities. The senior management team felt the need to rewrite the policies and procedures of the organisation as these were largely outdated.

QUESTION

If you were assigned to write the claims policies and procedure of Jones Insurance Ltd$,$ what regulatory checks would you need to include to ensure that the claims division is compliant with the prudential and conduct regulations.

Present a brief detailing the impact that these compliance rules and regulations might have on the claim$$s strategy of the firm, explaining how the claims function should manage its regulatory responsibilities and the implications of outsourcing claims.