What does insurance compliance mean?

Insurance compliance means that the behavior of insurance companies, insurance intermediaries, insurance agencies and their employees should comply with laws and regulations, regulatory provisions, self-discipline rules, market practices, internal management systems of companies and ethical standards of honesty and trustworthiness.

Insurance "compliance risk" refers to the risk that a bank may be subject to legal sanctions or regulatory penalties, major financial losses or reputation losses due to its failure to comply with laws and regulations, regulatory requirements, rules, relevant standards formulated by self-regulatory organizations and codes of conduct applicable to its own business activities. From the connotation point of view, compliance risk mainly emphasizes the economic or reputation losses suffered by banks for various reasons that explicitly violate laws, regulations and regulatory rules. This kind of risk is more serious in nature and causes greater losses.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.