- Large companies have been forming captive insurance companies (captives) to self-insure their risks since the 1950’s. In general, these captives were formed to lower insurance costs, provide access to the reinsurance market, and cover exposures where there are gaps in the commercial market. When congress enacted section 831(b) of the Internal Revenue code in 1986, it was intended to extend the benefits of self-insurance, from large publicly traded companies to smaller middle market closely held business entities.
- The demands on the internal audit departments of insurance organizations have increased significantly in recent years as technology advances, regulation becomes more rigorous, new risks emerge, and companies seek more business insights. Internal audit plays a crucial role in providing assurance on an organization’s governance, risk management, and control processes to help achieve strategic, operational, and financial objectives while balancing compliance objectives and expectations from regulators. Internal audit departments need to leverage an understanding of insurance industry trends, feedback from leadership, and available public information to add value to the organization – to optimize internal audit value.
- Under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), the Consumer Financial Protection Bureau (CFPB) will require lenders to provide new disclosures and meet new regulations on August 1, 2015.
- Project Risk Reviews (PRRs) help organizations mitigate risks by providing increased visibility, detecting issues earlier, improving effectiveness and quality of processes, and reducing overall project costs to help projects succeed.
- The demands on internal audit of insurance organizations have increased significantly in recent years as technology has advanced, regulation has become more rigorous, risks have emerged and companies have sought more business insights from internal audit teams.
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