Record retention refers to the policies and procedures an insurance agency, carrier, or financial institution uses to determine how long business records are kept, how they are stored, and when they are destroyed. Records include applications, policy documents, illustrations, disclosures, client communications, compliance files, commissions data, and more. Retention requirements arise from state insurance laws, SEC and FINRA rules, tax regulations, and internal risk management needs. Proper record retention supports regulatory examinations, error-and-omissions defense, client service, and business continuity. At the same time, organizations must manage storage costs, data security, and privacy obligations when retaining sensitive information for extended periods.

In everyday operations, record retention policies guide decisions about scanning paper files, archiving emails, configuring CRM and imaging systems, and purging older records. Compliance teams publish retention schedules that specify how long different document types must be kept-often ranging from three years to permanent. Audits and regulator exams test whether staff follow these rules. Advisors rely on strong record retention when they need to reconstruct case histories, respond to client disputes, or demonstrate that disclosures were provided. At the same time, cybersecurity and privacy programs ensure that retained records are encrypted, access-controlled, and disposed of securely at end of life. Clear record retention practices balance legal requirements, operational efficiency, and client confidentiality.