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6 Crucial Characteristics that Make a Good Compliance Person

26th February 2025

6 Crucial Characteristics that Make a Good Compliance Person

With 74% of insurance and financial services professionals reporting that the regulatory burden has increased dramatically over the last couple of years, non-compliance and relying solely on legacy processes is no longer feasible in the long term. Now more than ever, the role of compliance leaders and the influence they have in the market is crucial and can make or a break an entire firm.

 

Many characteristics must be considered when defining what makes a good compliance person, including their openness to adopting technology, particularly RegTech. However, most compliance professionals find themselves having to balance multiple functions simultaneously; balancing business risk, regulatory adherence and business growth which are tasks that demand strong-minded compliance individuals.

In this blog, we’ll expand on the qualities and characteristics that make a good compliance person in insurance.

1. Taking a Proactive Approach to Building a Compliance-Driven Culture

Most compliance professionals carry the significant responsibility of ensuring their entire organisation adheres to regulatory laws and obligations. However, this can sometimes lead to a disconnect in effectively communicating with employees and embedding a company-wide compliance culture. A strong compliance professional understands that regulations can be complex and works to create an environment where ethical behaviour, risk awareness, and regulatory adherence are ingrained in daily operations across all departments. This can be achieved through regular, up-to-date training, workshops, and discussions that keep compliance top of mind for everyone. Compliance isn’t just a function or a box-ticking exercise; it’s a core value that protects both the business and its clients.

2. Compliance Is, Above All, a Consumer Benefit

A good compliance person knows that while regulatory laws can be cumbersome, their primary purpose is to protect stakeholders. By carrying out effective due diligence processes on trading partners, compliance functions protect the business and policyholders from unfair practices and financial misconduct. An ethical compliance leader recognises that proactive compliance is a long-term investment. By reducing risks such as anti-money laundering and fraud, compliance fosters trust and strengthens customer loyalty.

3. Recognising that Technology is Essential

Legacy systems remain one of the biggest challenges for insurance firms today. Research shows that 70% of insurance professionals still rely on manual processes when reviewing counterparties, significantly impacting regulatory efficiency and effectiveness. The emergence of RegTech has highlighted its value in streamlining counterparty risk management, enhancing due diligence, and breaking down data silos. Forward-thinking compliance professionals recognise that adopting technology isn’t just about efficiency, but ensures a strategic move that helps reduce fines, mitigate reputational risks, drive revenue, and build customer trust. Without the right tech to empower compliance teams, leaders may struggle to balance competing priorities, spending valuable time on manual tasks that technology can handle seamlessly. By embracing innovation, they can shift their focus to higher-value initiatives that strengthen both compliance and business growth.

4. Being Empathic and Understanding

Most of the time, compliance leaders carry a huge responsibility in the firm they work at; they tend to have a lot of power and appear to be extremely authoritative. While this is a crucial trait, compliance directors must also be empathic and understanding towards other employees and realise that regulatory laws can be difficult to grasp and always be ready to explain and simplify complex jargon to different audiences.

At REG’s recent webinar in collaboration with Insurance Post – “Easing the Regulatory Burden to Allow Insurers and MGAs to prosper”,  Chief Risk and Compliance Officer at Jensten Group, Steve Folkard elaborated further on the qualities that make a good compliance person. He said: “The ability to make judgments under pressure, the ability to be able to deal with a lot of different and competing vues in an empathic way without appearing directive, working in compliance function gives you a great deal of power, but with that great deal of power comes a lot of responsibility. It’s really easy to wave a stick and say you must do this because the rule says you must. But if you’re on the receiving end of a message like that, do you really understand why and what the benefit of it is?”

5. Knowing All the Intricacies of Regulation

A good compliance person knows the regulatory landscape and the laws inside out, but a great compliance leader also keeps up with regulatory changes and understands how to apply them in a practical, effective and ethical way. Regulation isn’t just about knowing the rules but about interpreting them in a way that aligns with the overall company’s goals and knowing where technology should be introduced without thinking that it’ll replace human beings. Of course, there is always a balance between regulation and being able to generate revenue.

As Richard Turnbull, Managing Director at Collegiate Underwriting commented during the webinar; “A good compliance person will know how to apply those various regulations and rules we all have to adhere to in a commercial way. There’s no point for us to do what we do everyday if we’re not making money. We have to find a balance.” Thanks to its automating capacities, RegTech will only free up time for compliance individuals to redirect their focus towards more strategic and commercial-focused initiatives, while the software runs in the background taking care of the most complex due diligence processes.

6. Upholding Transparency and Fairness

A good compliance person is always transparent and fair, even when faced with pressure to prioritise business growth over regulatory obligations. However, nowadays it’s simply impossible to get away with regulatory gaps, especially with the FCA and PRA constantly reinforcing regulatory laws and carrying out extensive investigations that involve bank-breaking and reputation-tarnishing penalties. That’s why great compliance leaders know how to identify and manage conflicts of interest, ensuring that decisions align with both legal standards and ethical principles.

Expert Quotes...

“The ability to make judgments under pressure, the ability to be able to deal with a lot of different and competing vues in an empathic way without appearing directive, working in compliance function gives you a great deal of power, but with that great deal of power comes a lot of responsibility.

It’s really easy to wave a stick and say you must do this because the rule says you must. But if you’re on the receiving end of a message like that, do you really understand why and what the benefit of it is?”

“A good compliance person will know how to apply those various regulations and rules we all have to adhere to in a commercial way.

There’s no point for us to do what we do everyday if we’re not making money. We have to find a balance.” 

Watch the full webinar: “Easing the Regulatory Burden to Allow Insurers and MGAs to Prosper” in collaboration with Insurance Post.

Conclusion

Being a great compliance leader goes beyond holding a title or authority—it requires a deep understanding of the regulatory landscape, the ability to adapt to evolving trends, and a willingness to embrace technology when needed. True leadership in compliance also demands empathy and strong communication skills. A great compliance professional doesn’t just enforce rules—they take the time to educate and engage teams across the business, translating complex regulations into practical guidance. By fostering a culture of compliance from the top down, they ensure that regulatory integrity becomes a shared responsibility rather than just a function. Establishing this culture from the outset is essential to building a resilient, ethical, and future-ready organisation.

Speak to one of our experts to learn how REG Technologies can help you.

This article was published by:

Article author:

Manal Tjiou

Manal Tjiou is the Marketing Executive at REG Technologies. With a passion for digital marketing and creative strategy, she’s commited to increasing our brand awareness and thought leadership in the industry, ensuring our content resonates well with our audience.

020 3946 2880

info@reg.uk.com

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