Legislative and regulatory activity for the insurance industry this year has increased considerably when compared to the previous two years, a new report found.

A report released by Wolters Kluwer Financial Services’ Insurance Compliance Solutions group in Waltham shows from January to July, more than 10,000 pieces of legislation with potential effects on the insurance industry had been introduced nationwide. This is a more than 70 percent increase over the same period in 2008, and nearly a 50 percent increase over the same period in 2007.

"While this data shows that 2009 is shaping up to be a very active year, it also illustrates that staying on top of legislative and regulatory activity is a challenge that’s growing," said Kathy Donovan, senior compliance counsel at Wolters Kluwer Financial Services.

The study analyzed state and federal laws and regulations that pertain directly or indirectly to the insurance industry nationwide-a universe of nearly 270,000 items, which includes individual sections of law and regulation, plus advisory documents, such as bulletins and attorney general opinions.

According to Wolters Kluwer Financial Services’ research, nearly 26,000 state and federal laws and regulations pertaining to the insurance industry nationwide will change or be created this year. Additionally, about 30 percent of the regulatory activity through July of this year affects all lines of insurance business.

"With insurers of all types facing significant activity while trying to operate under tighter budgetary requirements, there is a great need to eliminate the highly manual processes of managing regulatory activity," said Daryl James, product manager for Insurance Compliance Solutions at Wolters Kluwer Financial Services. "Insurers need to explore and invest in ways to better monitor the environment and minimize costs associated with non-compliance."