Insurance Underwriting - Excel

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					This is the AuditNet Standard Risk Control Audit Matix which incorporates formats
used by many audit organizations in their documentation working papers. There are
format templates for risk control, audit procedures, questionnaires and checklists.
There is a blank workpaper and a report summary that can in used by audit
organizations. AuditNet has prepared a monograph for guidance on preparing and
developing audit work programs, checklists, questionnaires and matrices. The
monograph is available to AuditNet subscribers. For more information go to
www.auditnet.org
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   Process   Control Objective   Risk
                         Assertion                            Documentation W/P
Control Considerations   E,A,C,V,P   Description of control         Ref.
                               Testing
Do controls meet
                             exceptions
   objective?
                    Test       noted?     Resolution / remediation/ comments
    Yes/No
                   W/P Ref     Yes/No                    W/P Ref
Audit Program Insurance Underwriting


Objective                              Control Objective
Underwriting Policy                     Ensure underwriting policies are in
                                       place, are authorized at the correct
                                       level, and are followed




Underwriting Strategy                   Is the underwriting strategy
                                       appropriate and signed off at the
                                       correct level of the business




Underwriting Rating                     Ensure rates are set, reviewed and
                                       approved by appropriate personel.
                                       Also that they are properly applied


                                       .




Reinsurance                             This covers the company's
                                       approach to reinsurance.
Underwriting IT Systems    Ensure that IT systems support
                          underwriting in terms of strategy
                          implementation and day-to-day
                          operations.
Risk if Objective Not Met                            Control Technique
 Risk that underwriting policies are not appropriate Fully documented and comprehensive underwriting
to the business and have not been signed off at      policies
the right level.

                                                        Underwriting policies are regularly reviewed and
                                                       approved by suitably-qualified and experienced senior
                                                       underwriting managers.

 Risk that the company's underwriting strategy is      Underwriting policies are in line with company strategy.
not appropriate for the business, and not signed
off at the correct level

                                                        Underwriting strategy is set and reviewed at the
                                                       highest level of the business.


 Risk that rates are not set and reviewed by           Rating tables are reviewed regularly.
suitably qualified and experienced personnel,
resulting in inappropriate rating that could lead to
loss of business (rates uncompetitive) or financial
loss (rates too low).

                                                        Rating tables and any changes to them are approved
                                                       by the senior actuary

                                                        The impact of rating changes on the book of business
                                                       is regularly monitored


 Risk that the company does not have an effective A reinsurance strategy should be in place for each
approach to reinsurance resulting in either too   class of business being underwritten to ensure that the
much exposure or too little exposure being        correct level of exposure is retained and the correct
retained.                                         level passed to the reinsurance provider for that class.




 Risk that inappropriate changes are made to the        Any changes to the company's reinsurance
company's reinsurance arrangements. Changes            arrangements should be approved at a senior level
could include the addition or removal of a carrier, before implementation.
increasing or decreasing the exposure with a
single carrier, or retaining more or less exposure in-
house.
 Risk that IT systems do not support underwriting
strategy.



 Risk that underwriting systems do not reflect the
current rating structure

 Risk that IT systems allow unauthorised
underwriting - such as unauthorised discounting,
rating changes or unsupported classes of
business
          Performed     Date       Date      Budget   Actual   Document
Testing       By      Expected   Completed   Hours    Hours    Reference
Source   Reviewed By   Remarks/Comments
                              Client Name
                      Internal Control Framework

          Date Completed:
          Completed By:
          Reviewed By:

          Question                                                  Yes No* Comments /Description




              To the best of my knowledge, the answers and comments noted above are accu



          Name and Title of Person Completing Form (please print)                            Name and Title of Department Dire


* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                            Questionnaire
                   Signature of Person Completing Form                                                Signature of Department


                           11/17/2012
                          Date Form Completed                                                     Date of Department Directo




* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                            Questionnaire
                           Employee Responsible for Task




s noted above are accurate and reflect the current



Name and Title of Department Director (please print)


            * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
            or is to be performed.                            Questionnaire
   Signature of Department Director



Date of Department Director's Signature




      * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
      or is to be performed.                            Questionnaire
Finding Ref #   Control Testing   Finding
Management Response & Treatment

				
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posted:11/17/2012
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