No File Left Behind: Divest Your Records, Too by Jeff Picozzi

As an insurance company, you use paper like it's going out of style (which, in fact, it may be-but that's a different conversation). Each day brings a blizzard of new claims, policy files, sales reports, and more. If you sell a division or business unit, all of its records and data must go with it.

So how will you prepare those records to enable compliance and operational efficiency? Don't wait until the sale closes to get organized. Start early by applying these best practices to help ensure that potential buyers have access to the right information.

Best practice #1: Set up a functional classification system.

A clear, consistent way of naming your information takes on heightened importance during a divestiture. Over the years some classifications may have been added, altered or retired-cleaning up the metadata used to identify your stored records will strengthen the overall records and information (RIM) program and make life easier for you when it's time to locate specific records no matter which side of the merger and acquisition fence you find yourself on. In particular, a well-planned classification system provides a basis for full compliance, solid risk management, sensible retention strategies and enhanced security.

Best practice #2: Don't be a packrat.

Nothing slows a transaction more than wading through a vast slog of unnecessary or inactive records to find the one(s) you need. A records retention schedule provides a logical timetable for the disposition of old records-it thins the herd and eases the search process.

Best practice #3: Index everything.

Metatagging records with descriptors such as author, subject matter and creation date yields a twofold benefit: Designated parties can access the information they need, while confidential information remains secure. Keep in mind that physical records aren't organized with a view to a potential divesture. But during a divesture, the ability to accurately track, find and extract the necessary records becomes paramount, and metatagging provides that ability.

Best practice #4: Create the right image.

Consider converting all sale-related documents to an electronic records format. This will streamline the transaction by sparing potential buyers the need to pore through hundreds of physical records.

Best practice #5: Consult an expert records management team.

If you're planning a divestiture, consider partnering with an experienced records management firm. When timing is critical, records management professionals can get you where you're going faster and more efficiently, freeing you to concentrate on your core product line.

Insurance is still a paper-intensive business, and to some extent it always will be. But by using these best practices to get your records in order, you and the buyer will make it through the transaction with fewer road bumps-and fewer headaches.

Looking for more information on how your records and information management program can meet the challenges of mergers, acquisitions and divestures, then check out our Knowledge Center article Get Your Docs in a Row Before the Merger.

LINK:	http://blogs.ironmountain.com/2014/industry/financial-services/no-file...
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